By BRIAN GARRITY
October 11, 2003

NEW YORK - New copy-protection technology won't save the industry from falling sales and may encounter resistance in the marketplace, music executives recently warned. "CD copy protection will create a maelstrom of consumer anguish," said Talal Shamoon, CEO of InterTrust Technologies, a digital-rights-management technology company.

Shamoon recently spoke at a forum on copyright-protection technology in New York, presented by Sabety +associates [(moderated by Ted Sabety)].

The challenge that the growth of digital distribution presents arises from the fact that it separates music from the media on which it is played back, said Paul Vidich, Warner Music Group Executive Vice President for planning and business development.

***
Dick Wingate, president of BPOD Network, a provider of digital distribution services to cell phones, and former senior vp at Liquid Audio said the ideal scenario is to create an environment where even the consumer does not know there are constraints on personal use unless they are doing something egregious.

***
Carl Hampe, [partner at Washington D.C. based Baker & McKenzie] said that either way, the technology is likely to spur important conversations about copyright rules and fair-use concepts in Washington and in homes across the country.

For a complete copy of the article, please go to www.billboard.com.