Protexis Inc.

Protexis Inc.

September 16, 2005 07:59 ET

Protexis Announces Jump in Software Licensing Activity; Monthly Product Activations Triple over the Last Year

VANCOUVER, British Columbia--(CCNMatthews - Sep 16, 2005) -

Protexis Inc., provider of e-commerce and Digital Rights Management (DRM) hosted services for software publishers, today announced a significant increase in the number of products it has activated over the past year. Between July 2004 and July 2005, monthly product activations increased by over 200%, while total cumulative activations increased by almost 150%. This increase is attributed to both the addition of new clients and products using Protexis' licensing technology as well as growth in licensing activity with existing clients.

"We're very excited to see this kind of momentum and adoption of our licensing services. This kind of increase demonstrates, once again, how the massive growth of the internet has profoundly affected the way software is licensed and distributed. With an ever-growing number of software products purchased and distributed through online channels, product activation is the licensing model for today and the future," said Karl Hirsch, president and chief executive officer of Protexis.

"We believe our channel-neutral, back-office approach to product activation, combined with our unique real-time product integration capability, positions Protexis as an emerging leader in this space. We've seen an upswing in our metrics across the board, including four consecutive quarters of revenue growth. In particular, this growth in licensing activity proves that product activation is gaining widespread acceptance among software publishers and consumers alike," Hirsch added.

Product activation is a license validation procedure that protects software products from piracy and unauthorized use, and provides software publishers with the ability to better serve and understand their customer base through valuable installation metrics. Due to the continuing increase in online software purchasing and distribution, this licensing model best fits the needs of software publishers today because it doesn't need to be tied to a physical product. With a neutral provider, this hosted process of license validation for each purchase provides global, trusted visibility of product licensing activity across all channels.

Protexis holds some of the earliest patents in product activation, and supplies this technology to software publishers for incorporation into their products. Protexis introduced the first commercially available product activation technology in 1999, and has activated millions of products for leading software organizations worldwide.

About Protexis

Protexis develops, markets and sells the Protexis Publisher Services suite of revenue-enhancing services for software publishers. The suite includes Protexis E-commerce Services, Protexis Registration & Trialware Services, and Protexis Licensing Services. Protexis customers are leading software publishers including DivX Networks and Sage Software, plus many others. Protexis enables the secure digital sale of millions of copies of software worldwide. Protexis is headquartered in Vancouver, British Columbia, with offices in Seattle, Washington. The company is privately-held, and its investors include CNET Networks (NASDAQ:CNET), GrowthWorks Ltd. and Trudell Medical. For more information, please visit

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