29 June 2001

Nomura Research Institute, Ltd.

Technical evaluation for laying the foundation to promote practical utilization

of digital watermarks (STEP2001)

- Request for proposals -

1. Objective

Entitled STEP2001, this project is aimed at laying the foundation for activities to promote practical utilization of digital watermarks through testing to evaluate the pertinent technology proposed by the participating companies (gPARTICIPANT COMPANYh).

2. Results of this project

The anticipated results of STEP2001 are as follows.

-          Definition of the level of technology permitting practical utilization in distribution of digital copyrighted musical works

-          Selection of the technology (companies) with capabilities up to this level

-          Selection of companies to participate in proving tests conducted by collective administrations of authorfs rights

3. Setup for implementation

STEP2001 is being promoted by CISAC, BIEM and JASRAC as the project organizer ("ORGANIZER").  JASRAC also functions as the project leader and principal of evaluation and certification ("PROJECT LEADER").  In addition, the project is being supported by the collective administrations of authorfs rights. These organization are described as the member("MEMBER").

The ORGANIZER have asked Nomura Research Institute, Ltd., to serve as the project secretariat ("PROJECT SECRETARIST"). The PROJECT SECRETARIST@will carry out the evaluative testing in cooperation with the Japan Acoustic Laboratory.

4. Subject digital watermark technology

For STEP2001, the project organizers are seeking the participation of firms with the following technology.

1) Information embedded in music material

Watermark information is to be embedded in the sample tracks for two types of use.

l       Copy control information

-          2 bits in a time frame of no more than 15 seconds

l       Copyright management information and distributor information

-          72 bits in a time frame of no more than 30 seconds

** Copy control information would presumably also be used as copyrighted works
   management codes.

[Copyrighted works management information]

-          This information indicating recognition as a copyrighted work (by the copyright management organization)

-          This information indicating which copyrighted work is presented by the digital data (by the copyright management organization)

2) Prerequisites for digital watermark technology

While there are various conceivable prerequisites for digital watermark technology, those applied in STEP2001 are as follows.

(1) Robustness

-          The digital watermark embedded in music material must be capable of detection even after various processing for use.

-          In addition, the detected digital watermark information must be identical to the embedded information (False Positive Rate).

[Prospective processing]

-          Processing in the mastering studio

-          Processing in the broadcasting studio (and in the prospective broadcasting environment)

-          Processing related to distribution through the Internet and other networks

-          Processing by consumer-level equipment

(2) Audibility

After the digital watermark has been embedded in it, the music material must exhibit negligible deterioration of audibility (sound quality) even with golden or silver ears.  In addition, quantitative analysis from the standpoint of acoustic science must not reveal any characteristics that would pose problems in use.

(3) Time required for embedding and extraction of watermark information

The embedding and extraction of watermark information must be capable of accomplishment in a short time that would not hinder utilization.

(4) Multiple layer support (capability for handling multiple watermark layers)

The information embedded in music material must be capable of detection even after embedding additional information using the same watermark system.  (The technology must permit the embedding of different watermark information on the same music material with the same watermark system by more than one company.)

(5) Other items

The embedding of the digital watermark must not change the music material signal level.

5. Outline of the testing

1) Test specifications

The test specifications will be set at levels enabling analytical comparison with the results of the STEP2000 testing. The test specifications will be notified to the participating companies by the secretariat.

2) Test process

The technical evaluation will be carried out in two stages. Technical entries which pass the prescribed conditions in the first stage will undergo the second stage of testing.

Stage 1 (pre-testing)

Test of robustness

-          Implementation of testing for evaluation items (one or two) that do not depend heavily on the characteristics of the watermark technology, such as linear data conversion.

-          In addition, the detected digital watermark information must be identical to the embedded information (False Positive Rate).

Test of audibility

-          Implementation of simple testing with a very small number of subjects.

Other items

-          The embedding of the digital watermark must not change the music material signal level.

Stage 2 (main testing)

Test of robustness

-          Implementation for 18 evaluation items.

Test of audibility

-          Implementation of ABX testing using sample tracks in several genres. In addition, the technology will undergo analysis from the standpoint of acoustic science.

3) Interchange with participating companies

In the implementation of the testing, the secretariat and participating companies will provide each other with certain items, as follows.

(1) Items provided by the secretariat to the participating companies

-          Detailed test specifications

-          Information to be embedded as the digital watermark

-          CD-R recorded with the sample tracks (five tracks) (WAV file format:44.1KHz/ 16bits/ 2 channels)

(2) Items provided by the participating companies to the secretariat

-          CD-R (WAV file format:44.1 KHz/16 bits/2 channels) recorded with the sample tracks embedded with the digital watermark

-          Software (and manual) for embedding the digital watermark

-          Software (and manual) for extracting the digital watermark

In addition, the secretariat will engage in exchange of other types of information necessary for utilization (adoption by businesses) with the participating companies.

6. Schedule

1)  The companies intending to participate in the testing must convey these intentions to the secretariat no later than 25 July 2001 (Japan Standard Time; this stipulation also applies to other dates herein).  Thereafter, they will conclude a contract for participation (i.e., project membership) inclusive of NDA with the secretariat.  After contracting, the secretariat will promptly provide the participating companies with the prescribed items.

2)  The participating companies will provide the secretariat with the prescribed items no later 25 August 2001.

3)  The test will be completed no later than 25 September 2001.

4)  The project organizers will announce the level of technology permitting practical utilization and the technology (companies) capable of meeting this level in October 2001.

7. Participation conditions

In light of the project's objective, the following conditions will be applied for participation.

-          The technology in question must already be commercialized (or have an equivalent record of use).

-          The company in question must have a business foundation solid enough to ensure ongoing, stable use of the technology by companies wanting to adopt it.

The above notwithstanding, testing will not be implemented for companies that do not observe the schedule or other items of advance commitment.

8. NDA

The participating companies will conclude a contract for participation with the secretariat inclusive of NDA.  The NDA will contain stipulations on matters such as disclosure of information outside the secretariat and prohibition of reverse engineering.  At the same time, it will define the scope of information disclosure to the project organizers and to the general public.

* Japan Acoustic Laboratory, which is implementing the testing, will be accorded the same position as the secretariat in the context of NDA conclusion.

9. Technical certification

1)    The project organizers will use the data resulting from the project testing to determine the level of technology permitting practical utilization.

2)    The project organizers will certify technology (and the companies in question) capable of meeting the aforementioned level and announce the names of these companies (it will not announce the names of the participating companies whose technology is not certified).

* The presence or absence of participation in STEP2000 or possession of technology certified in STEP2000 will have absolutely no bearing on the certification work in STEP2001.

10. Proposal activities

1)       Upon the conclusion of the project, the project organizers will hold a meeting for presentation of the results to businesses involved in distribution of digital copyrighted musical works and propose specific schemes for practical utilization of the technology.

2)       Upon the conclusion of the project, the project organizers will also collaborate with companies developing digital watermark technology in execution of proving tests to serve as the basis for specific utilization proposals (the partners for this collaboration will be selected on the basis of the project results).

11. Inquiries

Inquiries and intentions to participate in the project should be conveyed to the parties noted below by e-mail or postal services (contact by phone will not be accepted).

(Intentions to participate and general questions)

Hideki Matsuo / Fumihiro Hirayama

Nomura Research Institute, Ltd. (secretariat)

2-6-2 Otemachi, Chiyoda-ku, Tokyo, Japan 100-0004

step2001@nri.co.jp

@

(Technical questions)

Dr. Hajime Suzuki / Dr. Yasushi Yoshida

Japan Acoustic Laboratory

1-38-7 Tomigaya, Shibuya-ku, Tokyo, Japan 151-0063

step2001@onkyo-lab.com