Cmix solution. CMix Japan Co. Ltd. Copyright (C) 2007 CMix Japan Co. Ltd. All Rights Reserved.

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1 Cmix solution CMix Japan Co. Ltd. 1

2 Content & Corporate Profile 1. Birth of Cmix 1-1. Current situation and issues of video piracy 1-2. Cmix business solution 1-3. Cmix system 2. Transition of media cycle 2-1. Transition of media cycle 2-2. Ideas to solve existing problems 2-3. Cmix patent embodies ideas CMix Japan Co. Ltd. URL Office 12-4F, Goban-cho, Chiyoda-ku, Tokyo Japan TEL / FAX / CEO/President Teppei Kamada Capital 45,000,000 Employee 7 Patent In the summer of 2006, we acquired business model method patent for moving image distribution system in Japan Filing a patent application in 11 countries (US, Canada, Korea, China, India, UK, France, Italy, Spain, Germany, Australia) Proceeding Patent Prosecution Highway (PPH) in the USPTO 2

3 1. Birth of Cmix 3

4 1-1. Current situation and issues of video piracy Piracy by illegal copy Winny Video sharing site Someone copies and shares video without permission No business model Copyright holder Issues that Cmix solves -What is the way of protecting copyright holder s profit, even if video is copied without their permission? -What is the business model optimized to the video sharing site? Video sharing website The number of video in internet is increasing (44 billion files in 2010) But it doesn t make a profit 4

5 1-2. Cmix business solution On the internet illegal copy file sharing Oh my God! Internet is a lawless area of video. Loss of profit-earning opportunity Cmix Video distributor Much-awaited video doesn t become a profit We convert illegal copy and video sharing into business chance If it is Cmix system, I hope that more people copy my video! Copyright holder Cmix solves all problems We convert spread of video by WOM or copy into copyright holder s profit 5

6 1-3. Cmix system Divide a video file into main file and small file Unity of main and small files is indispensable to view Decrypt small file when user contacts CM element Cmix system File sharing among users Contents holder server 1. Divide into main file and small file Paul age 15 Seattle Acquire and manage transmission log data Acquire audience data Manage conditions of viewing Control transmission of small file 2. Manage small file on the server Lee age 31 Beijing 3. Release main file Jun age 29 Tokyo Small file is encrypted by CM element 4. Streaming encrypted small file 5. Play video on the website of contents holder or copyright holder Maria age 26 Barcelona Shared main file Jessica age 19 New York Users is forced to return to the website of contents holder Daniella age 42 Sao Paulo Website optimized for Maria On optimized Website, it is capable of running advertisement and posting information, that provide new business chance Bobby age 37 London Jean age 59 Paris 6

7 2. Transition of video media business cycle 7

8 2-1. Transition of video media business cycle Birth of television Birth of internet Birth of Cmix Completion of business cycle Collapse of business cycle Contents & Advertisement Broadcasting corporation Video sharing Website illegal copy Broadcasting corporation Sponsor illegal upload file exchange Viewer Out of scheme? Television Viewer Viewer Advertiser Consumption Advertiser Consumer 8

9 2-2. Ideas to solve existing problems Problems of existing video distribution Streaming Contents holder High distribution cost No business model Piracy by illegal copy and file sharing Hoped compression technology Hoped business model Hoped countermeasure against file sharing Technical problems Distribution cost reduction Robust and flexible DRM Distribution cost reduction Robust and flexible DRM Change in thinking 1 Change in thinking 2 Change in thinking 3 Idea Idea Idea Minimize streaming capacity Encrypt by CM element Consider file sharing to distribution 9

10 2-3. Cmix patent embodies ideas Change in thinking 1 Change in thinking 2 Change in thinking 2 Idea Minimize Idea Idea Encrypt by CM element streaming capacity Consider file sharing to distribution Cmix patent 2 Encrypt by CM element Small file (streaming file) Encrypt CM element 1 small Divide video file main 5% 95% Free copy Impossible to view Main file (free copy) result result Distribution cost is reduced Even if main file is shared, viewer must contact CM element 4 Decrypt small file when user contacts CM element 3 Obtain main file (through P2P, SNS etc ) viewer Contact CM 5 Unite file result Contacting CM is only way to decrypt Decrypt 10

/ / WORLDWIDE HEADQUARTERS NORTH AMERICA W. R. Grace & Co. Conn. 62 Whittemore Avenue Cambridge, MA 02140-1692 USA Tel. 617-876-1400 Fax 617-498-2643 Grace supplies products to more than 120 countries

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