Verimatrix, a leading developer of IPTV content protection and security solutions, announced an additional level of digital watermarking capabilities that detect piracy to the culpable individual's set-top box. As an optional component to the Verimatrix Content Authority System (VCAS), the user-specific digital watermarking system is the industry's first to embed an electronic fingerprint in video content as it is played back at the set-top box. The breakthrough solution will be demonstrated at IBC2005, booth 1.443. The company will also be announcing new customer implementations and strategic partnerships that reinforce the strength of its VCAS at IBC2005.

Verimatrix protects content and video streams, as well as detects digital piracy at its point of origin, with carrier-class solutions designed specifically for today's bi-directional IPTV networks. Verimatrix developed VCAS as a software-based content security solution built on the principles of Public Key Infrastructure (PKI) and X509 digital certificates combined with digital watermarks. VCAS inserts three different types of watermarks so that the complete history of a media file can be determined: within the primary data center, at each edge site (or point-of-presence), and a third watermark, called a user-specific watermark, on each client device.

The user-specific digital watermark is a machine readable electronic fingerprint, which is embedded in the video stream. The watermark is invisible to the naked eye, but survives the transition from digital to analog and also commonly-used transcoding methods. The absence of one or more watermarks means that acts of piracy are being conducted before the media file arrives at the individual's set-top box.

"The IPTV market has gained so much momentum that content providers are now requiring operators to employ proven security measures before granting rights to premium content. The addition of user-specific watermarking to pinpoint individuals attempting to steal content has gotten the attention of IPTV operators and studios," said Tom Munro, CEO of Verimatrix, who was appointed to the role in March 2005. "Verimatrix has been at the forefront of providing software-based content security solutions to some of the world's largest telecommunications carriers. And we are continuing to penetrate global IPTV markets aggressively."

IBC attendees will be able to see how VCAS' patented digital watermarking and powerful encryption technology works and what would happen if someone attempted to hack into an IPTV system to steal or illegally distribute content. Demonstrations will be shown continuously throughout the show at booth 1.443.

"Verimatrix provides an independently-audited, software-based content protection solution that enables our customers to receive approvals for the distribution of premium content over IP networks," said Steve Oetegenn, EVP of global sales and marketing of Verimatrix. "The implementation of this industry first, user-specific digital watermarking system will ensure that our customers can meet future emerging requirements for high definition and earlier release content."

Verimatrix is also announcing its expansion into Europe with the opening of a sales and support office west of London. Due in part to its OEM relationship with Siemens AG and other valuable partners, the company is experiencing rapid growth in the IPTV market in Europe and will now be able to more effectively support its expanding customer base there.

Robert Payne, who joined Verimatrix as general manager and vice president of sales, will lead this expansion effort. Payne has more than 20 years experience working in the voice, video and data communications industries. Most recently as the European sales director, IPTV products, at Irdeto Access, Payne has a successful track record of building world-class sales teams and capitalizing on lucrative market opportunities. Verimatrix now has five sales and support offices worldwide.