SOURCE:; USA Video Interactive Corp.

January 30, 2007 09:00 ET

Anti-Piracy Protection Becomes a High Priority as Video Content Increases and Costs to Entertainment Industry Escalate Introduces USA Video Interactive Corp., Digital Watermarking Technology Developer, as a New Featured Company

POINT ROBERTS, WA and DELTA, BC -- (MARKET WIRE) -- January 30, 2007 --, an investor and industry news portal for the digital media sector, introduces USA Video Interactive Corp. (OTCBB: USVO) (TSX-V: US) as a new featured company. USA Video Interactive Corp. is a technology developer for the delivery of digital media, providing anti-piracy solutions to existing distribution channels and enabling media distribution to expand into interactive channels with Video-on-Demand. With the increasing amount of video content available on the Internet, the level of piracy is expected to surge making the need for anti-piracy policies and products a growing priority.

Revealing the damage caused by piracy, the Motion Picture Association of America (MPAA) estimates that the worldwide motion picture industry, which includes foreign and domestic producers, distributors, theaters, video stores and pay-per-view operators, lost $18.2 billion in 2005. More specifically, the MPAA puts the cost to American movie studios in 2005 at roughly $6.1 billion. According to the Canadian Motion Picture Distributors Association, the costs in Canada have reached $118 million in losses due to piracy issues.

A recent study conducted by the Institute for Policy Innovation (IPI) expands the scope of cost assessment and in addition to the billions of dollars in lost revenue faced by the film industry as a result of motion picture piracy, there is also a significant impact on the U.S. economy as a whole. The IPI report shows that movie piracy has generated an annual U.S. output loss of $20.5 billion, $837 million in annual revenue loss and has caused the loss of over 141,000 U.S. jobs.

Working to provide solutions to the growing global video piracy problem, USA Video Interactive Corp. has developed its anti-piracy product, MediaSentinel™ and is developing its MediaEscort™ for delivery in the first quarter of 2007. Both products utilize the Company's SmartMark™ digital watermarking technology as a means for producers and distributors to invisibly protect their content.

The Company's MediaEscort and MediaSentinel products automatically embed invisible forensic information called SmartMarks into every video frame. SmartMarks, which integrate with existing production technology, are invisible, unremovable, "digital watermarks" embedded into every video frame to protect digital video from piracy. These watermarks in turn equip the content producers and authorized distributors with the necessary evidence of intellectual property rights to prosecute against copyright infringements.

USA Video Interactive's MediaSentinel video embedding technology is available as a stand-alone workstation or through the Company's Anti-Piracy service network utilizing a pay-as-you-go format, and is compatible with current state-of-the art post-production master duplication systems.

The Company's MediaEscort product is a software application that plugs into video server equipment and offers the same seamless video frame marking as its stand-alone product, but is specific for video distribution over the Internet. USA Video Interactive Corp., in an effort to assist the movie industry in protecting their motion picture properties, has recently entered into an agreement with one of the six major Hollywood studio divisions, which has selected MediaEscort to protect their Internet distributed content.

As the level of video content increases, in particular as the Internet continues to grow as a media distribution channel, the need for proof of legitimacy has become essential for law enforcement agencies to be able to prosecute parties involved in video and movie piracy. Effective digital watermarking provides the necessary evidence, submissible in court that can help to facilitate the prosecution process.

To further enhance USVO's media tracking digital watermarking business, the Company recently entered into a multi-year patent license agreement with Digimarc Corporation, a leading supplier of secure identity and media management solutions, for use in forensic tracking applications of commercially available video, pre-release video, and home marketing screening video.

USA Video Interactive Corp. also holds a Store-and-Forward Video-on-Demand patent, which has been cited in approximately 206 subsequent patents, for the transmission of video content over networks faster than "real time." Video-on-Demand manages the delivery of compressed video to an end user through an interactive and timely method. According to estimates from Informa Telecoms & Media, online video services will generate approximately $6.3 billion, drawing further attention to on-demand content and the Internet as a growing delivery channel.

For additional information on USA Video Interactive Corp. (OTCBB: USVO) (TSX-V: US) please visit:

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