Verimatrix* Provides Essential Content Security and Revenue Enhancement for IPTV Networks

Q. How serious is the digital content security problem?
Theft of digital content impedes the adoption of the promising digital home usage models that involve the sharing and storage of premium video content, such as first-run movie videos. The consumer electronics industry’s vision of the digital home depends on security. In the fully integrated digital home, consumers want to consume premium digital content – whether they are at home, on the move or remotely.

How serious is the problem? We estimate that more than a third of Internet bit traffic is comprised of stolen video content, and the U.S. motion picture industry loses $20.5 billion per year in potential revenue due to piracy, according to a recent study. To satisfy the concerns of studios, content aggregators and service providers, IP-based digital content must be protected.

We are past the time when movie studios need convincing. Our role is to address the concerns of content owners and service providers over security and digital rights management so IPTV can grow to become a primary distribution medium for the premium movies that consumers want.

By providing security and rights management to consumer video playback and storage devices, we enable the provisioning of high-definition, early release content. Verimatrix carrier-class solutions are designed from the ground-up for today's bi-directional IPTV networks.

Q. Is Verimatrix software running on platforms based on the Intel CE 2110 media processor?
Our software has been ported to some of today’s most advanced consumer electronics platforms, including the new generation of high performance IP digital set top boxes and digital media players based on the Intel CE 2110 media processor. Verimatrix software is built from scratch to meet the security and digital rights management requirements of IPTV. The Intel consumer electronics platform based on the Intel CE 2110 media processor is a versatile device that makes it easy to port our software. Intel development tools allow us to provide a security client custom tailored for Intel system-on-a-chip platforms. We are extremely happy that Verimatrix software can be integrated into set top boxes and other devices based on Intel’s high performance platform architecture.

Q. Can you describe Verimatrix VCAS software?
The Verimatrix Video Content Authority System (VCAS) is an advanced suite of technologies that address content security challenges for the networks of today, and those of the future. It is an end-to-end solution that protects content, securing content rights and enhancing revenue streams as the content moves from the movie studio, to the telco, to the IP digital set top box. Or as we say, from “camera to couch.”

Q. Why is digital watermarking so important?
Forensic watermarking is the addition of information to the digital content that enables it to be traced to its owner. The integration of digital watermarking technology is especially important to enable usage models based on file sharing from device to device over digital home networks.

Watermarking is required by Hollywood’s Digital Cinema Initiatives (DCI) specification. The digital watermarks implemented by Verimatrix are designed to permit recovery of the watermark regardless of compression, transcoding and resizing of images.

Verimatrix’s VideoMark* is the only robust and invisible content tracking solution that enables forensic, user-specific marking of individual video copies to track piracy to the culpable user outside the digital network. Recent announcements indicate that VideoMark is the only forensic watermarking solution gaining traction in the marketplace.

Q. Can you provide an example of how VCAS works?
The protection of premium video on demand provides a good example, but the solution is equally applicable to IPTV broadcast and multicast systems.

VCAS software is designed to take advantage of the bi-directional nature of IP networks. The software is based on Public Key Infrastructure (PKI) that uses X.509 digital certificates to identify each component in the system and to securely encrypt data using public and private keys. PKI and X.509 certificates are used to register and authenticate the client device. Video content is then encrypted and optionally watermarked by the Verimatrix Preprocessor.

After the encrypted movie is sent to the set top box, the device requests the appropriate movie or broadcast keys from the VCAS server. The server issues the decryption keys only after extensive authentication using a combination of the X.509 digital certificates and digital signatures.

Signatures are sent to the VCAS system, which verifies the signature and retrieves the movie decryption key from the database. The encryption key is then returned via a secure connection to the set top box and the movie plays. Rigorous third-party audits have disclosed no security issues with VCAS software.

Q. What about Digital Rights Management?
In addition to robust security functionality, VCAS supports digital rights management (DRM) capability that we call “DRM Plus.” DRM solutions enable the electronic distribution of digital content while protecting the rights and revenues of copyright owners by associating usage rules or rights to the content. Moreover, the DRM system must employ robust security to ensure legitimate usage rights while protecting the content during distribution.

Networks of consumer electronics devices have unique requirements, including the ability to allow the exchange of content rights information between set top boxes, digital media recorders, PCs and other networked clients.

A concurrent requirement of any well-designed DRM system is the ability to associate rules for content protection while preserving a quality experience for the consumer. We have designed VCAS to be invisible, non-destructive and non-invasive. In a video on demand application protected by VCAS, the key exchange takes place in less than half a second, and the consumer’s channel changes are virtually unaffected by the data encryption. As a result, consumers perceive no difference between video on demand content and content stored on a PVR.

Verimatrix DRM software also enables detection of “cloned” devices and includes a security-hardened set top box client library. For enhanced security, the system includes a second CA/DRM protocol that can be switched at the head-end. Video can be encrypted from the content owner to telco head-end to set-top box.

Q. What is your track record to date?
For a second consecutive time, MRG IPTV Market Leader Report 2007 lists Verimatrix in first place in its global ranking of IPTV content protection vendors based on the number of global operator deployments and subscribers. And we won the 2007 IPTV World Series award for Best IPTV Content Protection/Rights Management Solution. Our software is currently deployed on more than 70 platforms worldwide, and is the most widely deployed IPTV content security system with tier one operators today.

Hollywood studios will use VCAS to protect premium movies delivered over IPTV on-demand services. A Verimatrix customer in Europe is using our VCAS software to secure content and digital rights for live soccer events whose licensing costs average € 30 million. We offer a suite of next-generation technologies that protect content and enhance revenue streams, while combating digital piracy wherever it occurs within the distribution chain.