STBs to Embed Watermarks

A watermarking technology used to trace pirated movies back to the source will soon be built into set-top boxes. Thomson developed NexGuard to trace pirate masters back to the theaters where they were stolen with camcorders or to DVDs distributed to reviewers and awards juries. Soon chips will be built into STBs to read watermarks in MPEG-2, MPEG-4 AVC, and VC-1 formats. The technology might be applicable to cable, satellite, or any other kind of STB. So if a piece of copyrighted material enters your home through the box, and ends up being pirated or file-shared, it will bear an individual watermark leading the copyright holder back to you. Should you worry? Said a Thomson executive: "The idea is to slow down piracy without limiting the use of the consumer. They should not be upset about this unless they are widely redistributing content." Of course, if you loan an archival video to someone who does file sharing, the copyright holder might become upset, and the copyright holder's attorney might make you very upset.

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