Hollywood Shows Strong Support of Watermarking as a Means to Effectively Reduce the Problems of Global Movie and Video Piracy

Interview with Digital Media Stock USA Video Interactive Corp (OTCBB: USVO), Anti-Piracy Technology Developer, on the Costs of Piracy and the Need for Improved Content Protection

POINT ROBERTS, WA and DELTA, BC – February 8th, 2007– www.DigitalMediaStocks.com, an investor and industry news portal for the digital media sector, presents an exclusive interview with USA Video Interactive Corp. (OTCBB: USVO; TSX: US.V), developer of anti-piracy products that utilize digital watermarking technology as a means for producers and distributors to invisibly protect their content. This discussion looks at the escalating problems and costs of piracy worldwide, the entertainment industry’s reaction, and the role that USA Video Interactive Corp. is playing as they work to provide content protection solutions for media participants.

The Internet has been a key contributor to the growing level of digital content now available, however with this surge has come an escalated amount of video and movie piracy, an issue that has become a serious global problem reaching levels of over $18 billion. As a result, this escalation has significantly impacted the traditional business models for content producers.

Mr. Patrick Gregston, Sales Manager for USA Video Interactive Corp., describes, “Their models are under attack. Those models are all centralized distribution of high quality. The advent of relatively cheap computing and digital imaging and related tools such as mass DVD duplication, or broadcast quality telecine have removed the barriers that made that necessary. What makes the digital era different is the speed and quality of what anybody can do, so the threats are multiple, and within the means of millions.”

Over the past few years many companies have turned towards Digital Rights Management (DRM) as a means of protecting content, however as evidenced by the growing worldwide costs associated with piracy and counterfeiting, this technology has not been completely successful. DRM has also been criticized for penalizing the genuine user through complicated processes in an attempt to dissuade fraudulent use.

“DRM is a complex interaction of a number of technologies attempting to prevent theft behavior. As an alternative, USVO applies unique digital watermarks, called SmartMarks, to motion pictures to make it possible to enforce the license violations that occur. USVO embeds the proof to catch crooks. This enables transactions, does nothing to complicate usage or inhibit people from doing what they have always done and had the rights to do,” explains Gregston.

Recent announcements have shown Hollywood’s full support of watermarking as a means to effectively reduce the problems of global piracy. Several industry consortiums are behind a major push for the adoption of a watermarking standard and the need to begin putting new technologies in this field to the test in an attempt to find adequate protection for content distribution.

“We are seeing acknowledgement from within the industry that the past approach is not working. We feel confident in our approach because our fundamental investment has been in a robust and adaptable simple solution that can be cost effectively adapted to the many different needs and methods of the many business units that make up the motion picture production and distribution industry,” explains Gregston.

To Listen to the Full Online Interview Click Here: http://www.DigitalMediaStocks.com/Audio/USVO/0207/default.asp

Digital Media Portal Sponsor:
USA Video Interactive Corp. (OTCBB: USVO; TSX: US.V) designs and markets technology for delivery of digital media. The Company's products add anti-piracy solutions to existing distribution channels and extend distribution into interactive channels with Video-on-Demand. For More Info: http://www.digitalmediastocks.com/CO/USVO/

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Source: DigitalMediaStocks.com, USA Video Interactive Corp.,

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