 | |
 |
Solving an Image Problem
The Internet is a great vehicle for publishing pictures of everything, from movie stars to priceless paintings. There's only one problem: Once an image is on a computer screen, it can be copied with a couple of mouse clicks.
That's been a real downer for content providers who have been unable to protect valuable photographs, illustrations and other trademarked images online. But things are about to change. Alchemedia, a small, privately held company that originated in Israel and is now based in San Francisco, last week began shipping software that lets web site operators prevent Internet users from copying, saving or printing images.
Alchemedia's technology promises to usher in a new wave of e-commerce in which high-quality graphics can be sold directly over the Net without fear of illegal distribution. Among the potential beneficiaries are magazine publishers, stock photo agencies and even Hollywood film studios, which can use the Internet to sell movie posters and photos of stars.
According to Forrester Research, libraries of images owned by software and media companies generate more than $300 million in annual sales. But many companies, fearful that their images will be illegally copied, refuse to put them on their web sites--or post only very small versions of them.
The ability to foil screen capture programs is a key to Alchemedia's technology.
"Knowing that images on the web are only a mouse click away from being copied, content owners will not distribute their property digitally without a way to protect revenue," says analyst Kent Allen at the Aberdeen Group. He adds: "Although no protection scheme is 100% certain, Alchemedia has provided a solution which will definitely limit attacks."
The ability to protect digital images also should enhance the viewing experience for millions of web surfers, who may soon see an explosion of large color images online. "The real winners are visitors to web sites," says Daniel Schreiber, the 28-year-old, London-trained attorney who cofounded Alchemedia. "Instead of seeing thumbnails, they will see full-size pictures."
Alchemedia's flagship product, Clever Content, is software that sits on a company's web server. It works by "tagging" images with protection coding as they're fetched off the server. A tagged image looks normal in all respects, but when you try to copy, save or print it, you get a message notifying you that it's protected. And if you think you can get around Clever Content by using the Print Screen key or a screen capture program, think again. You can capture the screen, but the protected images will be blanked out when you view what you've captured.
The ability to foil screen capture programs is a key to Alchemedia's technology. "When we were founding the company, everybody thought screen capture was an issue that couldn't be overcome," says Schreiber.
Clever Content makes it easy to sell images online. A buyer can see what he or she is getting, then make the purchase with a credit card. When the purchase is complete, the buyer can copy or download an unprotected version of the image.
Alchemedia isn't the first company to come up with a protection scheme for online graphics; but, its solution appears to be the most practical one yet. Previous efforts have centered on digital watermarking, which alters images slightly and identifies their owners. Unfortunately, however, watermarking can't prevent the images from being stolen in the first place.
Throughout the spring and summer, Alchemedia conducted beta testing of Clever Content with a number of major media companies. Among those who have tested the software are Warner Bros. and Playboy, two of the more image-rich companies on the web. A major test also is being conducted with Microsoft's (nasdaq: MSFT) Terraserver, which contains nearly 3,000 gigabytes of satellite images.
Clever Content isn't cheap. Customers can expect to pay $10,000 annually for each microprocessor in their web server. Alchemedia officials say they plan to unveil less expensive versions in the near future that will let individuals such as photographers and architects take advantage of the technology, without requiring them to have their own web server.
Founded in 1998 as cSafe, Alchemedia last week officially changed its name, relocated its headquarters to San Francisco and named a core executive team that will work with Schreiber and Chief Technology Officer Andrew Goldman, the other cofounder. Topping the list of new executives is President and Chief Operating Officer Steve Miller, formerly a vice president of marketing at Oracle (nasdaq: ORCL).
The company has raised a total $10 million, and it probably is looking at an IPO.
"I had a background in networking and imaging and the Internet and was keenly aware of the problems in protecting images," says Miller. "It's easy to see how Alchemedia is going to help vast segments of the Internet marketplace, so coming here was a no-brainer for me."
Aberdeen's Allen says he's been impressed by what he's seen from Alchemedia. "They've got a great management team, they seem focused and they have some strong technology under the hood," he says. "And I certainly haven't seen anybody directly in their space yet."
Alchemedia recently completed a second round of financing that brought in $8.5 million ($3.5 million each from Attractor and Entertainment Media Ventures and $1.5 million from IsraelSeed Partners). The company has raised a total $10 million, and it probably is looking at an IPO sometime next year--if it isn't snatched up before that by another software company or media giant.
Schreiber isn't opposed to accepting a buyout (another young Israeli company, Mirabilis, gave that option credibility when it sold itself to America Online last year for nearly $400 million). But, he says, the final fate of the company isn't a concern at this point. He just wants to keep his head down, concentrate on his product and become the leader in what could be a lucrative market.
|
