DigitalContainers Receives Notice Of Allowance for New Digital Distribution Patent "Delivering Electronic Content"

The patented invention facilitates superdistribution by delivering content directly and instantaneously from advertising on websites, peer-to-peer (P2P) networks, emails and instant messages.

Tucson, Arizona (March 15, 2006) – DigitalContainers Inc. announced today that it received a Notice of Allowance from the U.S. Patent and Trademark Office for its “Delivering Electronic Content" technology. With the allowance of this patent application, DigitalContainers has been granted protection for a system which allows “containerized” digital content – for example, a song, video or travel brochure – to be promoted and the request fulfilled instantly from banner and flash advertising on any website or in an instant message or email. When taken in conjunction with the company's previously awarded patents, "Regulating Access to Digital Content," US Patent No. 6,389,541, and "Tracking Electronic Content," US Patent No. 6,751,670, they provide an architecture for a superdistribution system that delivers, protects, tracks, authorizes and monetizes any type of digital goods.

According to Chip Venters, CEO of DigitalContainers, "We're very excited about this new patent as it now gives DigitalContainers additional strong intellectual property protection for our superdistribution ecommerce and rights management systems (SuperCommerce). It complements our other patents by serving as the "seed" mechanism to get content into circulation. Content owners can take total control of marketing their goods by placing ads on highly targeted sites, fulfilling orders and collecting payment immediately and directly from these ads, and tracking exactly which ads users respond best to.”

As proof of the potential power of superdistribution, a recent nationwide survey found almost 90% of adult Internet users share content with others via e-mail according to Sharpe Partners. Three out of five respondents said they shared content at least once a week, 25% do so more frequently. SuperCommerce supports this powerful distribution trend by allowing digital information to be freely distributed over peer-to-peer networks or the Internet (via email or instant messaging) while simultaneously protecting the information, tracking the usage, and collecting payment when appropriate.

Product Features“Delivering Electronic Content" is a targeted content-seeding mechanism that:

Works in any environment: peer-to-peer or centralized network, email or instant messaging-based distribution.

Creates virtual kiosks by providing instant “one click” fulfillment of digital content requests from banner ads, flash ads and web pages.

Supports a variety of digital content types: music, video previews, reports, e-books, brochures, catalogues, travel information, etc.

Works with the family of patented DCI technologies that persistently track and monetize downloaded files:

  • Token-based content licensing and device locking is extremely efficient authorization/authentication and conditional access system.
  • Payment gateway travels with the content and utilizes a variety of payments systems, including credit cards, micro payments and phone cards.
  • Backend system supports multi-level marketing and pays everyone in the value chain, including the rights holder, the distributor and the network.

Other Patents in DigitalContainers’ Superdistribution Family

Regulating Access to Electronic Content (Patent 6,389,541) regulates access to digital content using a token-based authorization system that locks content to a user’s device or devices. Authorization can be granted with any type of user input data, financial transaction data or system data. A unique, real-time payment gateway rides with content.

Tracking Electronic Content (Patent 6,751,670) tracks users and location of files persistently across distributed networks and on physical media. It allows for powerful new model called “superdistribution” and creates real-time database of consumer behavior."Digital Container's ‘SuperCommerce’ solutions are critical to the success of the emerging P2P distribution channel," said Marty Lafferty, CEO of the Distributed Computing Industry Association ( "The optimal way to efficiently reach a global market is through super-distribution, which requires one user passing along media efficiently and securely to the next. DCI’s ‘SuperCommerce’ system facilitates super-distribution, making P2P a viable commercial technology." Lafferty added, "By serving a large and global market through de-centralized file-sharing distribution, industries like ours, which distribute media over the Internet and via P2P, can realize significant cost advantages compared to old methods of centralized distribution that require greater initial and ongoing investments and are typically unfair to media creators."