What is the Secure Digital Music Initiative?
The Secure Digital Music Initiative (“SDMI”) is a forum that brings together the worldwide recording, consumer electronics and information technology industries to develop open technology specifications for protected digital music distribution. The specifications released by SDMI will ultimately provide consumers with convenient access to music both online and in new emerging digital distribution systems, enable copyright protection for artists’ work, and promote the development of new music-related businesses and technologies.

Who is involved in the Secure Digital Music Initiative?
SDMI meetings are typically attended by representatives from an average of 110 different companies including members from the worldwide recording industry, consumer electronics and information technology companies. A list of SDMI members is available on the SDMI Web site.

How does SDMI benefit consumers?
SDMI participants share a common goal: a satisfying consumer experience. With the major music, consumer electronics and technology companies supporting SDMI, consumers will have access to a variety of SDMI-compliant music, software and hardware.

SDMI systems will also enable consumers to easily collect and play music purchased from a variety of sources both on-line and off-line. SDMI-compliant systems (software and hardware) will allow consumers to use the music they already have on their computers, or other currently available digital music, in the same ways they do today. In addition, SDMI-compliant software will allow consumers to access new digital content.

How will SDMI benefit both label affiliated and unaffiliated artists?
Any artist, whether affiliated or not, can use an SDMI system to protect their music. By providing a way for music to be delivered in a secure format, SDMI systems offer the opportunity to develop new ways of reaching music fans, while still protecting artists’ rights. At the same time, the SDMI 1.0 Portable Device specification allows the continued use of both unprotected and protected formats. This means that those artists who choose to allow their music to be distributed without security will be able to do so and know that SDMI-compliant devices will be able to play that music.

Does SDMI intend to provide an alternative to MP3?
SDMI is a framework for secure digital music distribution. It is not meant to provide an alternative format to, or compete with, MP3 or any other compression technique or audio technology. In fact, SDMI-compliant devices will be able to play MP3 content.

What are the differences between current MP3 players and SDMI-compliant devices?
Current MP3 players can only play MP3 content. SDMI-compliant devices will play content originating from both SDMI-compliant and non-compliant sources.

Can SDMI-compliant devices play MP3 files?
Yes. SDMI-compliant devices will be able to play all existing digital formats; it is up to the manufacturer of each device to choose which particular formats to support. The only content SDMI-compliant devices will not play is illegally copied SDMI music beginning in Phase 2.

Unlike non-SDMI devices, SDMI devices can also be upgraded to play new music released in the future in new SDMI-compliant formats. And many SDMI portable devices will be able to play music that is digitally downloaded in new, protected formats right away.

Can a consumer use his or her existing digital music library in new SDMI-compliant devices?
Yes.

Will the watermark technology chosen for Phase 1 interfere with existing CD players?
There are hundreds of millions of CD players in the marketplace and nothing being done within SDMI will in any way limit consumers’ ability to use those machines with existing and new CDs.

Is it true that, in order to play MP3 files, SDMI-compliant software and devices will disable MP3 files after converting them into SDMI-compliant files?
No. SDMI-compliant software may translate MP3 files into a form acceptable for SDMI devices. The exact form will depend on the device. The original MP3 file will remain intact on the computer.

Why does the SDMI framework allow both protected and unprotected formats?
SDMI members agree that protected formats enable the growth of electronic music distribution (EMD) by protecting the rights of artists. Members also recognize that there are many legitimate uses for unprotected formats. As a result, SDMI supports both.

Will consumers still be able to copy their CDs onto their personal computers?
Yes. The specification allows consumers to copy (rip) their CDs onto their computers for personal use (on their PC, on their portable devices, on their portable media, etc.). In fact, the specification enables consumers to do so as many times as they wish – as long as they have the original disk.

Will the privacy of users be compromised as a result of SDMI technology?
No. Any user who wants to legally distribute music anonymously on the Internet or elsewhere will be able to do so using any of a number of alternative technologies, such as MP3. And of course, the use of the SDMI system is entirely voluntary.

Will it be possible to have content that plays on multiple platforms – PCs, car stereos, portable devices, etc.?
Yes. The 1.0 Specification is intended for portable devices and PC software, but future specifications will address other devices such as car stereos. Existing requirements that relate to portable media (e.g. flash-RAM cards) were written with portability and multiple platform support in mind.

Will it be possible to have content that plays on portable devices from multiple vendors?
Y es. The SDMI Portable Device specification is a framework for security that promotes interoperability and allows content to be converted from one format to another. The specification allows, but does not require, manufacturers to create systems that are interoperable. There are now a number of different music players and systems on the market that are not compatible with each other. And the initial SDMI offerings also will not offer widespread compatibility across devices at this time. Given the extremely short time frame for producing the portable device specification, it wasn’t possible to achieve this goal now. But SDMI is working towards that goal and eventually, we hope that all SDMI-compliant devices will be able to play all SDMI-compliant content.

What is the “trigger” within the SDMI Portable Device specification?
The “trigger” is an upgrade notification. SDMI Phase 1 portable devices and compatible software are expected to arrive on the market in time for the 1999 holiday season. SDMI Phase 1 software, once installed on a user’s PC, will be capable of receiving a signal indicating that a software upgrade, incorporating new Phase 2 SDMI technology, is available. As a result, a consumer who uses Phase 1 software to play or copy a new Phase 2 musical release will receive notice that the software on their PC needs to be upgraded. The upgrade is not mandatory, but it is necessary in order to play new music that includes Phase 2 SDMI protection. The upgraded software will continue to accept unprotected or open formats.

Does the SDMI specification designate particular technologies?
SDMI is an architectural framework, and is not intended to specify particular technological choices (such as compression or encryption technologies). But there are some components of the system that may require the designation of a particular technology. The Phase 1 “screen” technology is such a component.

When will SDMI choose a technology for Phase 1?
A number of large and small technology companies have proposed impressive technologies to perform the functions of the Phase 1 screen. Testing of these technologies has already begun. It is expected that a technology will be chosen by the SDMI participants in August. This timetable allows adequate time for portable device manufacturers to incorporate the designated technology in devices they put on the market this fall.

How many SDMI-compliant portable devices will be marketed this year?
A number of companies have already announced plans to produce SDMI-compliant portable devices, but precisely how many will be on the market is unknown. The SDMI specification is a voluntary standard, and individual manufacturers will decide whether or not to produce SDMI-compliant products. It is anticipated that both compliant and non-compliant devices will be on the market this fall.

What is the specific timeline for the SDMI specification?
SDMI has two target dates. The first addresses the immediate market demand for portable devices in order that they may be manufactured in time for the holiday season. SDMI completed the first specification on June 30, 1999 and published it on July 13, 1999 after a final editorial review. The long-term specification, which will address the entire delivery chain, is targeted for initial public review in the second quarter of 2000.

What is the SDMI reaction to the flurry of announcements pertaining to secure digital music? What does this mean to the initiative and its goals?
SDMI was not created to produce a single format or a single solution for the secure distribution of digital music. SDMI is a forum for the development of voluntary, open specifications that all of these new ventures can use to protect the future of music. These announcements demonstrate the increasing interest in the marketplace for digital music distribution, and the need for security. In addition, recent announcements typically include statements from music and technology company partners that they intend to be fully compliant with SDMI, showing their commitment to protect music and support this initiative.

What is the relationship between SDMI and the Recording Industry Association of America (RIAA)?
The RIAA, along with its sister organizations IFPI and RIAJ and the major record companies, was the driving force behind the initial launch of SDMI. However, SDMI is an independent coalition of organizations and the RIAA and its member companies are members in the same standing as each of the more than 100 technology company participants.

How does a company become a member of SDMI?
SDMI is open to companies that have significant direct activity in digital music or digital music technology. These companies must express their commitment to SDMI by agreeing to abide by its Terms of Participation and paying a $10,000 membership fee. Societies and associations representing authors, composers, performers, publishers and other music industry interests who are members of the Music Industry Advisory Council may also attend SDMI meetings.