Released July 25, 2000

NARM To Aid In Adoption Of Digital Distribution

Partners With Reciprocal And Supertracks On Glossary

As A First Step To Enhance The Consumer Experience

NEW YORK — July 24, 2000 — As digital distribution becomes an increasingly important issue for the music industry, standardizing the consumer experience has emerged as a critical need.  In response to this, the National Association of Recording Merchandisers (NARM), today announced that it is working with two leading digital rights management services companies, Reciprocal and Supertracks, on the creation of a glossary of standard, consumer-friendly terminology.  This is a first step to help the industry and the consumer to more easily adopt and enjoy digitally distributed music.

The need for standard terminology became evident at a recent meeting of the NARM retailers with various digital music providers.  “A lot of the discussion was devoted to simply making sure everyone understood the concept or terminology being discussed,” said Pam Horovitz, NARM President.  “Fortunately, the executives from Reciprocal and Supertracks reached the same conclusion and approached NARM with a proposal for creating a glossary of standard terms and acronyms relating to digital distribution.  We applaud the initiative of both these companies and we thank them for their generosity.”

Charles Jennings, CEO and co-founder of Supertracks, stated “From a technology perspective, driving the legitimate market for digital music forward is all about clarity, coherence and interoperability.”  Echoed Larry Miller, President of Reciprocal Music, “Though we compete at some levels with Supertracks, we believe that collaboration on a glossary is an important step in moving the industry forward and we welcome other companies to help us drive this important initiative.”

A first draft of the glossary has already been assembled by the Reciprocal/Supertracks team and includes words and acronyms that are frequently used within the industry.  Reciprocal and Supertracks already had internal glossaries in place; in addition, the glossary draws from acknowledged sources, including SDMI and WIPO.  Sherry Lamoreaux, the Supertracks executive heading the project team, added, “We've worked to eliminate mention of any branded or proprietary technologies since our intention is to develop a common language to further the understanding of digital distribution terms to help create a consistent experience for consumers and retailers everywhere.”  

NARM has presented the initial draft of the glossary to members of its Online Music Retailing Issue Forum and solicited feedback.  It is hoped that a final version of the glossary will be ready by September.

About NARM

NARM serves the music and other prerecorded entertainment software industry as the pre-eminent forum for insight and dialogue for its more than 1,100 member retailers, wholesalers, distributors, entertainment software suppliers, and suppliers of related products and services.

About Reciprocal

Reciprocal, the global leader in digital rights management transaction services provides comprehensive, easy-to-implement e-commerce clearing services and back-office solutions for the music, publishing, software, film, entertainment, and other digital content industries. Reciprocal offers content owners a true outsourced DRM solution that allows them to realize new revenue streams while efficiently protecting their online digital assets.  The Reciprocal Digital Clearing Service leverages leading DRM technology from InterTrust Technologies Corporation, Microsoft Corp., IBM, ContentGuard, Inc., Adobe Systems Incorporated, and Preview Systems, allowing companies to choose the solution that best fits their business needs. Reciprocal

Digital Clearing Service is secure, flexible and capable of handling millions of transactions per day. Leading content companies such as Sony Music Entertainment, BMG Entertainment, Zomba Records, Houghton Mifflin, Reuters and Aberdeen Group have selected Reciprocal as their digital rights management services provider. Privately held, Reciprocal maintains offices in New York City, Buffalo, NY and Research Triangle Park, NC.

About Supertracks Inc.

Supertracks enables the legitimate digital distribution of music (DDM) over the Internet.  By integrating best-of-breed technologies, Supertracks provides the scalable, trusted infrastructure that record labels and retailers need in order to embrace the Internet as a commercially viable marketplace for selling digitally downloaded music.  Supertracks operates digital rights management systems to protect and manage content and intellectual property, and offers complete e-commerce and clearinghouse services, automated data tracking and reporting, and marketing and promotional services for channel members.  Supertracks is a charter sponsor of Artists Against Piracy and is a member of the Secure Digital Music Initiative (SDMI).  

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