1. © 2000 Verance Corporation Verance Audio Watermarking Technologies for Protection of Digital Audio and Video Joseph M. Winograd, Ph.D. Verance Corporation Presentation to DVD CPTWG September 20, 2000

2. © 2000 Verance Corporation Verance Presentation Overview Audio Watermark Technology Overview DVD-A/SDMI-1 System Overview (“Verance System”) Potential Uses of “Verance System” for DVD-V Other Verance Solutions for Video

3. © 2000 Verance Corporation Verance Verance Audio Watermarking Overview Data embedded directly into audio waveform Transparent –Passed multiple “golden ears” tests Robust –Survives consumer and professional processing, including unprotected analog and digital formats Efficient –Low implementation complexity Flexible –Extensible to fragile watermarking, compressed formats, layering, transactional, and beyond

4. © 2000 Verance Corporation Verance “Verance System” Overview Created by Verance and 4C with record industry participation Component of DVD-Audio security architecture –playback/record control, serial copy management Adopted for SDMI Portable Device specification –record control, upgrade trigger 30+ licensees currently, including: –Leading CE manufacturers –Leading IT companies –The five major worldwide recording companies

5. © 2000 Verance Corporation Verance “Verance System” Overview (cont’d.) Transparency –Demonstrated inaudible at 96/24 in multiple tests with recording industry “golden ears” Robustness –Lossy coding to 32 kbps/channel, noise to 35 dB, ±10% speed change, ±4% time scaling, echo, wow & flutter, multichannel mixing, equalization, analog conversion, more Efficiency –Detection possible in low cost devices (including DVD-Audio players and recorders)

6. © 2000 Verance Corporation Verance “Verance System” Data Payload 72-bit Data Payload –4 CCI bits every 15 seconds of content –8 Usage Identifier bits every 15 seconds of content –60 Content Identifier bits every 30 seconds of content CCI (4) Usage ID (8)Content ID (60) 72-bit Verance System Watermark Payload

7. © 2000 Verance Corporation Verance “Verance System” CCI Data Field C3, C2: Copy Status (CS) bits –[1,0] = One Copy Allowed –[1,1] = No More Copies –C2 can be remarked by compliant recorder C1: SDMI Upgrade Trigger bit –[0] = Phase I devices handle content according to CS bits –[1] = Phase I devices reject content, request upgrade C0: Reserved for future use –Current devices ignore CCI (4) Usage ID (8)Content ID (60) C3 C2 C1 C0

8. © 2000 Verance Corporation Verance “Verance System” Usage ID Data Field U7-U0: Usage Identifier (UID) bits –Reserved for future use –Currently required to be set to all zeros –Anticipated to be used to identify release formats (e.g. DVD-Audio, EMD, etc.) –Potentially useful for applying content protection policies according to media type or release format CCI (4) Usage ID (8)Content ID (60) U7U6U5U4U3U2U1U0

9. © 2000 Verance Corporation Verance “Verance System” Content ID Data Field V59-V0: Content Identifier (CID) bits –Reserved for future use –Not currently licensed –Anticipated to be used to identify content/recording uniquely CCI (4) Usage ID (8)Content ID (60) V59V58V57V2V1V0

10. © 2000 Verance Corporation Verance “Verance System” Serial Copy Management (DVD-A) Encrypted, CS = [1,0] Encrypted, CS = [1,1] Unencrypted, CS = [1,0] Unencrypted, CS = [1,1] Compliant Playback Device (DVD-Audio) Compliant Recording Device (DVD-Audio) Encrypted, CS = [1,1] R

11. © 2000 Verance Corporation Verance “Verance System” usage in SDMI Phase I Devices CS = [1,0] SDMI = 0 CS = [1,1] SDMI = 0 CS = [1,0] SDMI = 1 CS = [1,1] SDMI = 1 Phase I SDMI-Compliant Recording Device CS = [1,0] SDMI = 0 U N S E C U R E D T R A N S F E R UPGRADE

12. © 2000 Verance Corporation Verance “Verance System” Enhancements for SDMI Ph. II Existing Verance System system plus: –Enhanced Security Embedding Increased security within SDMI usage models –Enhanced Robustness Watermarking Improved robustness overall (e.g. lossy compression to 8 kbps/channel, noise to 10 dB) –Analog Fragile Watermark Provides “do-not-copy-if-compressed” state to permit detection of unauthorized compression –Remarking Not supported in Phase I specification Three remarking options: Master-Quality, Studio-Quality, Consumer-Quality –Renewability Currently under evaluation by SDMI

13. © 2000 Verance Corporation Verance Potential Use of “Verance System” for DVD-V DVD-Video Playback/Record Control I –Modified serial copy management protocol One serial copy over encrypted channel AND one serial copy over unencrypted channel Supported by existing “Verance System” components

14. © 2000 Verance Corporation Verance Modified Serial Copy Management Protocol Encrypted, WM CS = [1,0] CGMS = [1,0] Encrypted, WM CS = [1,1] CGMS = [1,1] Compliant Playback Device (DVD-Video) Compliant Recording Device (DVD-Video) Encrypted, WM CS = [1,1] CGMS = [1,1] R Encrypted, WM CS = [1,0] CGMS = [1,1] Encrypted, WM CS = [1,0] CGMS = [1,1] Playback control for unencrypted content is supported but not shown

15. © 2000 Verance Corporation Verance Potential Use of “Verance System” for DVD-V DVD-Video Playback/Record Control II –Standard serial copy management protocol One serial copy over encrypted channel OR one serial copy over unencrypted channel Requires additional technologies (compressed remarking)

16. © 2000 Verance Corporation Verance “Verance System” Serial Copy Management Encrypted, CS = [1,0] Encrypted, CS = [1,1] Unencrypted, CS = [1,0] Unencrypted, CS = [1,1] Compliant Playback Device (DVD-V/A) Compliant Recording Device (DVD-V/A) Encrypted, CS = [1,1] R c R Note: Rc = Remarking of compressed content

17. © 2000 Verance Corporation Verance Other Verance Solutions for Video Enhanced recording control –Additional bits enable signaling of distribution channel –Remarking prevents serial circumvention Transactional marking –DRM architectures (including video on demand and pay per view systems) –Production environments Content usage tracking/metering –Broadcast monitoring –Digital Cinema –Peer-to-peer file sharing networks –Forensic anti-piracy tools

18. © 2000 Verance Corporation Verance Summary Verance audio watermarking enables increased copyright protection “Verance System” is: –seeing widespread acceptance and deployment DVD-Audio, SDMI Phase I, SDMI Phase II candidate –expected to be integrated in video products (e.g. DVD-A/V combo products) –applicable to protection of audiovisual materials –extensible to new rights management architectures Verance technology is applicable to many additional rights management applications

19. © 2000 Verance Corporation Verance Audio Watermarking Technologies for Protection of Digital Audio and Video Joseph M. Winograd, Ph.D. VeranceCorporation Presentation to DVD CPTWG September 20, 2000