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SafeMedia Corporation, Boca Raton, FL
Client since 2007

COMPANY OVERVIEW

1.What does SafeMedia Corp. develop? (products/applications/solutions)
SafeMedia’s technologies provide individual users, businesses, educational institutions, and public/private organizations with an immediate, cost-effective way to totally safeguard their network infrastructure from every risk associated with illegal file sharing of copyrighted content, insure 24/7/365 compliance with all federal and state digital copyright laws and eliminate the risk of legal prosecution.

2. What is SafeMedia’s mission?
To develop innovative technologies that does not violate user privacy, consistently block only illegal P2P protocols and functionality, restores and preserves the valuable assets value of digitized copyrighted materials, and enables all global copyrighted content industries to use the Internet for the first time as a safe, viable mass distribution channel.

3. Who are SafeMedia’s intended customers? (industries, channels, segments)
Clouseau® users are all those who use the Internet-whether it be for commerce, education or personal activities. They include businesses of all sizes up to and including the Fortune 500, schools and universities, government agencies, non-profit organizations and libraries, families and individuals.

4. Who are SafeMedia’s partners? (Developer Community/OEMs, etc.)
SafeMedia’s patented technology was developed internally and several partners are under consideration to be announced later.

5. Who manages SafeMedia?
Safwat Fahmy - Chairman & Chief Executive Officer
Fahmy started the development of anti-piracy software in October 2003. He brings more than 30 years of computer architecture design and software product development experience to SafeMedia Corp. Previously, Fahmy founded and was Chairman of the Board for WIZNET, a B2B eCommerce content firm. Fahmy has been a pioneer software developer for many large companies, including the development of GIS systems for federal and local governments and IBM's IPCS/MAPICS. His technology innovation has carried over to SafeMedia Corporation today with Clouseau®.

Jay L. Maher III - Chief Financial Officer & Treasurer
Maher is the owner and CEO of JLM III CPA Firm. Maher brings more than 30 years of public accounting experience to SafeMedia Corp. He is a licensed CPA in the state of Florida and Pennsylvania and a member of FICPA. Maher has vast experience in financial, accounting, taxation, RS representation, due diligence and mergers and acquisitions. Additionally, Maher serves on the board of directors of several local companies and various charitable organizations.
Sidney Klein -Vice President, Strategic Alliances
Klein has more than 30 years of experience in marketing, strategic planning and business development. Klein has been instrumental in the launch of many successful new businesses for companies as diverse as Procter & Gamble, Citicorp, and AT&T. Before SafeMedia Corporation, he directed a high tech incubator for Internet startups.

PRODUCT LINE(S)

1. What is Clouseau? (purpose and function)
Clouseau is the world’s first and only truly effective Internet Piracy Prevention (IPP) solution. Clouseau alone never invades user privacy, prohibits all illegal P2P traffic, while allowing the passage of legal Bit Torrent P2P and all other Internet transmissions. Clouseau enables all global copyrighted content industries to use the Internet for the first time as a safe, viable mass distribution channel.

There is no other technology that will both never violate user privacy and consistently block illegal P2P protocols and functionality, and there is no other technology that makes the Internet a legitimate business model for the mass distribution of digital music, movies, television, and software.

2. How is Clouseau different from other anti-piracy applications/solutions?
Conceptually, Clouseau differs from other anti-piracy applications in two fundamentally important ways. Clouseau prohibits all illegal P2P traffic and does not invade user privacy.

The following are the results of many years of research and analyses by SafeMedia concerning the piracy issue

o P2P is the main culprit in creating mass distribution of illegal digital files.
o P2P protocols have two main methods of delivering shared files:
A. The most used P2P protocols make all digital files in the shared directory of any computer joining the network available to everyone in the network for sharing. We will call this type (A) P2P.
B. Bit Torrent makes only the files in the Torrent file available for sharing. We will call this type (B) P2P.

o It became obvious to SafeMedia that type (A) P2P segregation between legal and illegal traffic severally infringes on and invades user privacy.

o SafeMedia also documented that there is no evidence of type (A) P2P usage in any legal traffic; it is all illegal sharing.


As a result of these findings SafeMedia established the foundation of it’s system functionality based on the following two factors:

o SafeMedia’s system must not invade user privacy, while concurrently prohibiting all illegal P2P traffic from any P2P protocols.

o Additionally, SafeMedia’s system must provide for all legal Bit Torrent P2P traffic to pass freely in order to support the higher education requirements of “Academic Freedom.”

3. How is Clouseau different from everything else?
Clouseau is different in at least 6 fundamentally positive ways.

1. Clouseau is available for purchase and deployment.

2. No Invasion of User Privacy: Clouseau detection does not invade user privacy, never captures or records user IDs, does not decrypt any traffic, and allows the execution of all current security techniques (Tunneling, SSH etc.). Clouseau never opens packets to determine file legality or illegality. That determination is based solely upon what type of transmission it is-never its content.

3. Accuracy: Clouseau is fully effective at forensically discriminating between legal and illegal P2P traffic with no false positives (i.e., identifying another protocol as the targeted protocol) whether encrypted or not. It prohibits sending and receiving all illegal P2P files, and prevents the flow of copyrighted digital files from legal Internet services, DVDs and CDs to P2P networks where they are totally accessible to millions of users to pirate.

4. Scalability: With little or no latency and nearly perfect accuracy, Clouseau operates at network speed processing large traffic volumes on the order of several hundred thousands to several million connections at a time (depending on model) with minimal computation expense.

5. Robustness: The P2P community is constantly devising new strategies to cloak their activities including launching new protocols, double and triple-layered encryptions, and frequently changing servers. SafeMedia vigilantly monitors all these rapidly changing characteristics. Clouseau is provided with a remotely secure update every three hours ensuring its constant ability to meet these dynamic challenges.


6. Network Appliance Advantages: In addition to the above, Clouseau® also provides some unique improvements to the appliance model:

• Lights-Out Management – Clouseau has been designed as a zero-maintenance appliance from the perspective of the customer. All updates are done automatically and don’t require operator/administrative intervention.

• Network Invisibility – Clouseau operates in a stealth mode when performing P2P filtering. This allows the appliance to be completely invisible to attacks that may be launched on the device.

• Resilient and Self-healing – In the event of physical attack or hardware or software failure, numerous internal fault-tolerant, self-protection measures are in place to protect the device from undesirable changes affecting the functionality of the appliance. Should deprecation of the module or corruption of a file system be discovered, Clouseau will self-heal by automatically restoring corrupted files. Clouseau reboots in the event of power loss (in approximately 45 seconds) to ensure system and network security and functionality. Thus, using a combination of resilient operations, self-healing techniques and built-in fail-safes, Clouseau is able to protect itself from multiple types of attacks that may be imposed on it.

• Plug and Play – Clouseau is very easy to install and requires no changes to existing network topology.

4. How is Clouseau® purchased? (Site license? LAN? Institution? Consumer?)
Clouseau is available for purchase from SafeMedia Corp. Site licenses are available for networks of every size from residential through the Fortune 500. Discounts are available for all educational institutions, libraries, and nonprofit organizations.

5. How does Clouseau work?
Clouseau detection does not invade user privacy, never captures or records user IDs, does not decrypt any traffic, and allows the execution of all current security techniques (Tunneling, SSH etc.). Clouseau never opens packets to determine file legality or illegality. That determination is based solely upon what type of transmission it is--never its content.

The Clouseau Process
1. Clouseau Is A Bridge
Clouseau is a bridge on an Internet network subnet. Like a bridge, information passes over or transfers in both directions. Clouseau looks at each transmission.
2. P2P or Not P2P Classification
Clouseau determines if the transmission is a P2P transmission or is not a P2P transmission.
3. Non-P2P Released
If the transmission is not a P2P transmission (e.g. HTTP, HTTPS, client/server, email, VoIP, tunneling, etc.), Clouseau ignores it. All non-P2P transmissions are passed along to their destinations.
4. Clouseau Is Only Interested In P2P
At this point, only P2P transmissions are left.
5. BitTorrent or Not BitTorrent Classification
The P2P transmission is inspected to determine if it is BitTorrent or not.
6. Not BitTorrent-Dropped
If the P2P transmission is not BitTorrent, it is dropped.
7. Legal or Illegal BitTorrent Classification
If the P2P transmission is BitTorrent, then Clouseau determines if it is legal BitTorrent or illegal BitTorrent.
8. Legal BitTorrent Released
All legal BitTorrent is passed along.
9. Illegal BitTorrent-Dropped
All illegal BitTorrent is dropped.



10. Transmission Disposition
Based upon detection, Clouseau takes one of four actions with every transmission:
• All non-BitTorrent P2P is dropped.
• All illegal BitTorrent P2P is dropped.
• All legal BitTorrent is passed along.
• All non-P2P is passed along.

6 Does Clouseau come in different models?
Clouseau is available at three different price and performance levels to accommodate the widest variety of customer bandwidth-level needs.



Clouseau 10: The Clouseau entry-level system is appropriate for low-bandwidth applications with 100Mbit (10/100 Ethernet) networks. It uses a basic configuration on integrated, highly efficient hardware, delivering solid performance at an aggressive low price.
Clouseau 500: Mid-level system appropriate for use in small to medium size organizations and institutions. The 500 model handles 1-2 Gigabit (10/100/1000) Ethernet lines. It uses multi-core with hardware accelerated inspection and I/O to deliver high throughput and low latency.
Clouseau 1000: High-level system engineered for use in large organizations and institutions such as universities and large corporations where 10 Gigabit network throughputs are required. It uses more on-chip cores and co-processor acceleration blocks and will easily meet this high performance mark.


7 How is Clouseau implemented?
Clouseau is designed to connect to any subnet no matter how it is configured. Wired or wireless, fiber or gigabit subnets are supported by Clouseau. The following describes Clouseau connectivity in small, medium, and large network settings.

Small network/residential: Clouseau is installed in between the DSL/cable modem and the local switch or WiFi broadband router/gateway. Illegal P2P traffic is automatically dropped before entering or exiting the network.



Residential Home DSL/Cable Modem Layout



Medium network/small business: (10-50 users served by a fractional T1 or business DSL). Clouseau is installed as a bridge in between the firewall and the switch. P2P traffic is automatically dropped before exiting or entering the network.



Medium Network/Small Business Layout



Medium network/medium business: (50-100 users served by a NxT1 or business DSL). Clouseau is installed as a bridge between each department switch and the central switch or firewall (high-availability option is available). Multiple Clouseau units are used to keep each department’s P2P traffic localized, and to reduce single points-of-failure. P2P traffic is automatically dropped before exiting or entering the network.



Medium Network/Medium Business Layout

Large network/large business or university: (Characterized by many interconnects multiple operating units and/or buildings, and large number of users). Clouseau is installed as a bridge between each operating unit/building switch and the local Ethernet cloud. Multiple Clouseau units are used to keep each building’s P2P traffic localized, and to reduce single points-of-failure. P2P traffic is automatically dropped before exiting or entering the building network.



Large Network/Large Business or University



Large university with centralized High-Availability Clouseau: (Characterized by many interconnects, multiple buildings, and large number of users). Clouseau is installed at the central core of the network. P2P traffic is automatically dropped before exiting or entering the campus. This method used when it is difficult to overhaul local networks, or to minimize the number of Clouseaus deployed on the network.




University Campus with Centralized Clouseau in HA Mode



BENEFITS

What are Clouseau’s benefits? (For consumers; industry stakeholders; governments)
Clouseau benefits are far ranging and will positively affect not only the creators of copyright protected material, but also the US economy and all those who use the Internet-whether it be for commerce, education, or personal activities.

For producers and distributors of copyright protected digital content:
• Clouseau will finally provide the same level of protection from Internet theft that every other industry enjoys today.
• Restore and preserve the asset value of digital copyrighted materials.
• Record labels and motion picture companies will have control over all aspects of Internet marketing, product and sales.
• The Internet will be a safe and viable mass distribution channel for digital copyrighted materials. E-commerce will be a full-fledged source of high margin incremental profits, and will generate growth for all digital content industries.

For creators of digital content
• The musicians, singers, and songwriters; actors and screenwriters; software developers and authors will get the royalties and fees they have earned. Virtually all depend on these royalties and fees to make a living.
• Moreover, especially in the music area, Clouseau will help protect the reputations of all those who make music from the often inferior quality of illegal P2P content.

For professional organizations
• With higher sales and profitability, many more song and movie projects will get done.
• More projects means requiring more of the services of all the various professional organizations. The US movie industry alone employs 750,000 people ranging from stuntmen, to makeup artists, to grips and flower arrangers.

For businesses
• Clouseau’s benefits extend to businesses of all sizes up to and including the Fortune 500. By preventing illegal P2P activity, Clouseau will insure that businesses and all employees are 24/7/365 compliant with all Federal and State anti-piracy statutes and copyright protection laws.
• Network capacity will be fully available for business critical missions rather than misappropriated for P2P-related activities.
• Employee productivity will increase and ROI will rise.
• In addition, Clouseau will protect business users from potential P2P associated massive disruptions or losses to their digital assets.


For schools and universities
• Clouseau’s benefits to schools and universities will be substantial. By recapturing network capacity (estimated at as high as 70%-80%) that is now unavailable due to P2P network traffic, institutions can forego expensive system expansions.
• Schools and universities could refocus on education rather than spending thousands of hours and millions of dollars addressing abuses of computer systems, inadvertent virus infections, and the inability of the system to accomplish critical educational missions.
• Schools would stop receiving warnings and threats of legal action issued by the RIAA because they would be in 24/7/365 compliance with all copyright laws.
• Importantly, Clouseau compliance is user-friendly rather than threatening, total rather than hit and miss, and will encourage a respect for the intellectual property rights of others.

For individuals and families
• Clouseau is the most effective, efficient, and economical solution to protect individuals and families from the risks of illegal file sharing.
• It will protect the system from security attacks often associated with P2P transmissions.
• Clouseau will prevent exposure to offensive content.
• Clouseau, by ensuring 24/7/365 compliance with all copyright laws, will eliminate the possibility of financial and emotional damage due to legal action arising from copyright law violations.
• Finally, Clouseau will restore the respect for the property of others that illegal P2P has so weakened.

For the economy
• Clouseau will protect the value of the single largest source of US foreign exchange.
• Clouseau will help protect Core Copyright industries contributing an estimated 6% of US gross domestic product and totaling $626 billion a year (2005, Copyright Industries in the U.S. Economy: The 2006 Report, produced by Economists Incorporated for the International Intellectual Property Alliance).
• Clouseau will help copyright industries continue their annual employment growth rate of 3.19% per year-- more than double the rate achieved by the economy as a whole.

However evaluated, whether by performance, preservation and creation of digital copyright assets value, US economic impact, or its benefits to universities and businesses, and families and individuals, Clouseau IPP is the only, best-of-breed Internet Piracy Prevention technology.


EFFICACY/RESEARCH

1. Has Clouseau been field-tested for efficacy? (who/what/when/where/how)
Yes. Clouseau has been thoroughly ‘field-tested.’ White papers and test results are available upon request.

2. Is the data available for review?
A White Paper on Clouseau, which was independently tested outside of SafeMedia Corporation and reveals how effective its functionality and quantifications are, is available upon request. The author is a highly respected scientist and faculty member at Florida Atlantic University (FAU).

3. What were the outcomes?
The test results confirm that Clouseau indeed eradicates all P2P traffic, does not intrude on user privacy, allows legal Bit Torrent P2P to pass, and operates at network speed. Additionally, the test results revealed that Clouseau is self-healing, and it restores operations after power interruptions in less than 45 seconds.

4. Are any pilot programs in place with schools/universities? Any planned? (who/what/when/where/how)
SafeMedia is currently installed at FAU and Fairview Residential (outside sourcing for university housing units).

Additionally, Clouseau is installed and operational in two medium size commercial locations, and is being validated with two editorial writers.

MAYO Communications is currently testing the hardware on its local area network (LAN) without any issues. Other Hollywood and California venues are in the planning/implementation stage.

INDUSTRIES/CONSTITUENCIES
1. How does Clouseau affect schools and universities?
• Clouseau’s benefits to schools and universities will be substantial. By recapturing network capacity (estimated at as high as 70%-80%) that is now unavailable due to P2P network traffic, institutions can forego expensive system expansions.
• Schools and universities could refocus on education rather than spending thousands of hours and millions of dollars addressing abuses of computer systems, inadvertent virus infections, and the inability of the system to accomplish critical educational missions.
• Schools would stop receiving warnings and threats of legal action issued by the RIAA because they would be in 24/7/365 compliance with all copyright laws.
• Importantly, Clouseau compliance is user-friendly rather than threatening, total rather than hit and miss, and will encourage a respect for the intellectual property rights of others.

2. How does Clouseau affect individual consumers of music and movies and TV entertainment/content? (Benefit)
• Clouseau is the most effective, efficient, and economical solution to protect individuals and families from the risks of illegal file sharing.
• It will protect the system from security attacks often associated with P2P transmissions.
• Clouseau will prevent exposure to offensive content.
• Clouseau, by ensuring 24/7/365 compliance with all copyright laws, will eliminate the possibility of financial and emotional damage due to legal action arising from copyright law violations.
• Finally, Clouseau will restore the respect for the property of others that illegal P2P has so weakened.

3. How does Clouseau impact individual creators/performers of music/filmed entertainment/content? (Benefits)
• For creators of digital content
o The musicians, singers, and songwriters; actors and screenwriters; software developers and authors will get the royalties and fees they have earned. Virtually all depend on these royalties and fees to make a living.
o Moreover, especially in the music area, Clouseau will help protect the reputations of all those who make music from the often inferior quality of illegal P2P content.

• For professional organizations
o With higher sales and profitability, many more song and movie projects will get done.
o More projects means requiring more of the services of all the various professional organizations. The US movie industry alone employs 750,000 people ranging from stuntmen, to makeup artists, to grips and flower arrangers.

4. How does Clouseau affect copyright holders?
• Clouseau will finally provide the same level of protection from Internet theft that every other industry enjoys today.
• Restore and preserve the asset value of digital copyrighted materials.
• Record labels and motion picture companies will have control over all aspects of Internet marketing, product and sales.
• The Internet will be a safe and viable mass distribution channel for digital copyrighted materials. E-commerce will be a full-fledged source of high margin incremental profits, and will generate growth for all digital content industries.

TECHNOLOGY SECTOR AND OEMS

What are SafeMedia’s objectives in working with the technology community? (Partner? License? Buy-out?)

1. The ultimate objective is to save jobs and protect the entertainment industry.
2. To insure that copyrighted assets values are protected.
3. To make the internet the premier distribution channel for digital copyrighted materials.


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