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Rightsrouter and DOI Presentation to IDF Members Meeting 22 nd June 2004 Gordon Rintoul Rightsrouter and DOI Presentation to IDF Members Meeting 22 nd June 2004 Gordon Rintoul - Director of Operations

Rightsrouter History Spun out of the UK's Association of Independent Music (AIM), where the Rightsrouter History Spun out of the UK's Association of Independent Music (AIM), where the team pioneered one-stop collective licensing with individual rights holder control at AIM's new media R&D arm Musicindie. Completed first legitimate licensing agreement with the original Napster in 2000, providing catalogue from 200+ labels (125 k tracks) Since then, the team has completed many other collective deals on behalf of the AIM members. Involved with trial of Chinese broadband services resulting in first ever royalties from that country to be paid to European labels Actively involved in several industry research consortia of the EU Commission, including Emucast and Musical. Rightsrouter is based in Scotland has representative offices in London and Zurich. © 2004 Rightsrouter - Strictly Confidential

Rightsrouter Approach Our Approach: • Rights holders should have direct control of their assets Rightsrouter Approach Our Approach: • Rights holders should have direct control of their assets and maintain a direct client relationship with the party distributing their content. • Content distributors (e. g. online music services) should be empowered to access a large content catalogue and stay in control over editorial decisions • Based on these core principles, Rightsrouter does not stand in the "middle" but simply opens up a direct link between rights holders and content distributors, allowing them to deal with each other in a way that is efficient, transparent and fair. This is what we do - nothing less and nothing more. © 2004 Rightsrouter - Strictly Confidential

Rightsrouter - Content Distributors For a content distributor, there are three key benefits of Rightsrouter - Content Distributors For a content distributor, there are three key benefits of Rightsrouter: • Quality Catalogue: Rightsrouter provides fast access to international music content. • Management of Rights Data: Rightsrouter is the efficient administration tool for contract management. Content distributors can negotiate efficiently with thousands of rights holders and continuously keep track, add content, change terms, or expand to new forms of exploitation. • Integration with Third-Party Providers: Rightsrouter links to dedicated providers of related services, such as content preparation, content delivery, and payment distribution. © 2004 Rightsrouter - Strictly Confidential

Rightsrouter - Rights Holders For Rights Holders, Rightsrouter enables: • Immediate access to a Rightsrouter - Rights Holders For Rights Holders, Rightsrouter enables: • Immediate access to a growing number of licensing deals (including download/streaming, subscription/per track purchase, mobile delivery, ringtone licensing, and more). • To decide which of your content will go into which deals and under what conditions. • Any changes to your rights data will be fed continuously to the participating content distributors. It's your content - you control it. © 2004 Rightsrouter - Strictly Confidential

Rightsrouter - Consulting • Legal Issues: territorial differences and local copyright regimes, requirements with Rightsrouter - Consulting • Legal Issues: territorial differences and local copyright regimes, requirements with local collective rights societies • Data Management: metadata formats, conversion, updating, unique identifiers, DRM • Content Management: digitization, encoding, cover art, related chart and biog data, storage, and delivery • Related Factors: content exploitation strategies in different channels, content distribution monitoring, payment processes Rightsrouter is one of the most experienced companies in the world in addressing these issues. Our team members are experts in intellectual property rights and metadata management with many years of industry experience. © 2004 Rightsrouter - Strictly Confidential

Identifier Principle Detailed metadata set for License rules Detailed metadata set for IPR License Identifier Principle Detailed metadata set for License rules Detailed metadata set for IPR License Detailed metadata set for Digital Object ID Kernel Metadata PR Me tad ata I Compulsory metadata set for all ID’s © 2004 Rightsrouter - Strictly Confidential

Licensing Chain Retail CD Creator Producer Manufacturer Distributor Retailer Consumer Music IPR Licensing On-line Licensing Chain Retail CD Creator Producer Manufacturer Distributor Retailer Consumer Music IPR Licensing On-line Creator Producer Manufacturer Music IPR Licensing New communication gap © 2004 Rightsrouter - Strictly Confidential

Content Supply Chain Retail CD Creator Producer Manufacturer Distributor Retailer Master recording format, Sleeve Content Supply Chain Retail CD Creator Producer Manufacturer Distributor Retailer Master recording format, Sleeve Design Final coverart, glass master, redbook format Glass master used for multiple duplication Warehouse storage & shipping to retail Order/Sell product & account for sales Label Distributor Retailer Creator Producer Manufacturer Distributor Retailer Audio/artwork/data (eg CD & excel sheet) Create digital master files (eg. Wav/coverart) Convert master files to client encoding spec Server/HD store, and deliver via ftp/HD Order/Sell product & account for sales Label Content Mgmt Co. Consumer Licensee On-line Consumer © 2004 Rightsrouter - Strictly Confidential

Content Supply Chain Content Preparation Packaging/Delivery Content Orders Digital Assets created & owned by Content Supply Chain Content Preparation Packaging/Delivery Content Orders Digital Assets created & owned by label. (e. g. metadata, wav and master cover art scan). These assets can be managed by label or assigned to Content Mgmt. Co. such as Distributor. Digital assets requested by licensee are converted to provided spec (Packaged) by assigned Content Mgmt. Co. & delivered according to preferred delivery method (e. g. via ftp). Can be requested by licensee through Rightsrouter system. Solutions in place to order tracks cleared for license and route the order to label assigned Content Mgmt. Co. On-line Creator Producer Manufacturer Distributor Retailer Audio/artwork/data (eg CD & excel sheet) Create digital master files (eg. Wav/coverart) Convert master files to client encoding spec Server/HD store, and deliver via ftp/HD Order/Sell product & account for sales Label Content Mgmt. Co. Consumer Licensee Common Identifier? © 2004 Rightsrouter - Strictly Confidential

Rights Content Labels Metadata Rightsrouter™ System Metadata Mgmt. Tools License Admin Tools CD/Product Delivery Rights Content Labels Metadata Rightsrouter™ System Metadata Mgmt. Tools License Admin Tools CD/Product Delivery Catalogue db Search/Request Content Rights db License Admin Tools Media Asset db Licensee’s Content Delivery DOI Potential Rightsrouter™ offers a complete licensing & digital content fulfillment system. © 2004 Rightsrouter - Strictly Confidential