Digimarc Files Patent Infringement Suit Against SESAC; Broadcast Monitoring System Licensed From...

Business Editors/Technology Writers

TUALATIN, Ore.--(BUSINESS WIRE)--Oct. 11, 2001

Digimarc Corporation (Nasdaq:DMRC), the world leader in digital watermarking solutions, today announced that it has filed suit against SESAC in the U.S. District Court for Oregon, charging infringement

SESAC is a performance rights licensing organization based in Nashville, Tenn. It has collaborated with Verance Corporation in development and distribution of Verance's ConfirMedia broadcast monitoring system.

"We have made it very clear that we will not tolerate unlicensed use of our technology in the music industry," said Bruce Davis, Digimarc's CEO.

The two patents asserted against SESAC are among five that have been asserted by Digimarc against Verance.

About Digimarc

Digimarc Corp. (Nasdaq:DMRC), based in Tualatin, Ore., is the world leader in digital watermarking solutions. Digimarc's patented digital watermarking technology is used in a range of solutions for brand protection, brand management and security applications. The technology allows digital data to be embedded imperceptibly in traditional and digital media content including photographic or artistic images, movies, music, packaging, printed materials, promotional items, value documents, tickets and holograms, among others. The company continues to build a pervasive new communications platform by developing an increasing array of diverse product offerings. These offerings benefit a broad range of consumers, corporations and government institutions, enhancing the protection of copyrights, the security of value documents and the management of media and fostering integrated marketing and e-commerce for many goods and services. Digimarc's leading customers include creative professionals, major media companies and central banks.

The company's offerings include the Digimarc MediaBridge(TM) family of solutions for brand management and enhancement, and the Digimarc Excalibur(TM) family of anti-counterfeiting and security solutions for brand and document protection. The MediaBridge family includes Digimarc ImageBridge(TM), a means to communicate copyrights in digital images, track the images on the Internet and facilitate online licensing and related e-commerce, as well as Digimarc MediaBridge(TM) for Packaging and for Promotions, which offers a fundamentally new way for consumers to access the Internet using printed materials as direct portals to relevant destinations on the Internet. Digimarc's security family includes Digimarc Excalibur(TM), a group of complementary security products and services that help brand owners protect their products from counterfeiting or diversion, and an anti-counterfeiting system, developed in cooperation with a consortium of leading central banks that deters the use of personal computers in the counterfeiting of value documents. Digimarc is also a member of the Video Watermarking Group (VWM Group), which includes Hitachi, Macrovision, NEC, Philips, Pioneer and Sony, to provide video copy prevention and play control solutions for digital recording devices. In addition, Digimarc video watermarking technology is being licensed for innovative new applications, such as broadcast monitoring. Digimarc has more than 250 U.S. patents pending and 29 issued. Digimarc's vision is to have its watermarking technology become a standard feature of all media content. Please go to www.digimarc.com for more company information.

Securities Safe Harbor

This press release contains forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including statements about the outcome of pending litigation, are subject to certain assumptions, risks and uncertainties. Although Digimarc believes that the expectations reflected in its forward-looking statements are reasonable, actual results could differ materially from those expectations or from historical results. Such risks and uncertainties are outlined in Digimarc's Annual Report on Form 10-K for 2000 and its most recent Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission. Digimarc is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.