SOURCE: SafeMedia Corporation

April 03, 2007 05:00 ET

SafeMedia Corp. Technology Applies a Tourniquet on Hollywood's Bleeding Internet Piracy

California Loses $407 Million, Including $213 Million in Lost State Income Taxes, and $194 Million in Sales Taxes Study Says

HOLLYWOOD, CA -- (MARKET WIRE) -- April 3, 2007 -- SafeMedia Corporation, based in Boca Raton, Florida has developed technology that completely wipes out illegal file sharing. "SafeMedia's 'Clouseau®' makes it impossible for anyone to send or receive any illegal Peer-2-Peer transmissions or file sharing," said President Safwat Fahmy, the founder and CEO of SafeMedia Corporation. "Clouseau® examines all incoming and outgoing packets of information, destroys all illegal P2P while legal P2P goes to its desired location without any delay." SafeMedia has retained MAYO Communications, Los Angeles to help spread the word that its core technologies are the best and only solution to ending Online piracy.

"Current technology is worthless in stopping P2P piracy," he explained. "What was needed is a totally new approach in system architecture, and the Clouseau® is the best-of-breed Internet Piracy Prevention solution. It was designed from scratch specifically to stop all P2P Internet piracy no matter where it originates world wide."

According to a study released this year by the Los Angeles County Economic Development Corporation (LAEDC), state and local governments lose three times from piracy. First, they lose the sales taxes that should have been paid on the copied items. Next, they lose additional taxes when lost business revenues translate into lower spending and fewer jobs. And third, they bear the increased police, court, and prison costs associated with combating counterfeiting and related criminal activity.

"The MPAA commissioned study reveals that the sound recording industry lost billions to piracy in 2005: sales of pirated music CDs were worth an estimated $4.5 billion and there were about 20 billion illegal downloads," said Study Author Greg Freeman, vice president, Public Policy and Consulting, LAEDC.

"Valuing the illegal downloads is trickier still, yet even a modest value of 10 cents per song suggests further industry losses of $2 billion," explained Freeman. "Global sales (physical and digital) of music in 2005 were $33.5 billion, with The Recording Industry Assn. of America (RIAA) members (U.S. companies) accounting for about 37 percent of the sales. Assuming a proportionate share of the global losses suggest U.S. firms lost $2.4 billion to piracy in 2005. Using the Los Angeles County's share of national employment in the sound recording industry (36 percent) suggests losses to L.A. County of $851 million."

"The technology moves through multi-layered encryptions, analyzes network patterns and updates itself frequently," explained Fahmy. "The packet examinations are noninvasive and foolproof. Clouseau® prevents the illegal back and forth flow of copyrighted files like you would find through LimeWire, Morpheus or eMule. This technology prevents a real loss to the industry."

Advanced technology and a unique approach to fingerprinting and DNA markers created by SafeMedia allow the thorough examination of all incoming and outgoing packets: illegal P2P is eradicated, while legal P2P passes along to its destination with no measurable delay.

At the industry level, the RIAA has threatened some of the nation's top universities with copyright infringement lawsuits, and hundreds of pre-litigation letters have been sent to students who have illegally downloaded thousands of songs. They've been given the option of settling for $3,000 - $5,000 or face lawsuits for up to $750 per song or more than $1 million in fines.

"For the first time ever, policy makers have the solution to insure compliance with the law. Businesses, universities, organizations and Internet users can comply in a friendly, positive environment without expensive and hostile legal action enforcement. Copyright holders can finally make the Internet available as a safe, viable distribution channel for all content industries," said Fahmy.

About SafeMedia Corporation

SafeMedia's technologies provide individual users, businesses, educational institutions, and public/private organizations with an immediate, effective way to totally safeguard their network infrastructure from every risk associated with illegal file sharing of copyrighted files, insure 24/7/365 compliance with all federal and state digital copyright laws and eliminate the risk of legal prosecution. For more about the unique technology visit:

[Editors: For interviews, images and a demo please contact George McQuade, 818-340-5300 or 818-618-9229 or]

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