LOS GATOS, California — January 24, 2005 — Audible Magic Corporation has joined with other high-tech companies in the filing of an amicus curiae brief with the United States Supreme Court in the case of Metro-Goldwyn-Mayer Studios Inc. et al vs. Grokster et al. The amicus (or “Friend of the Court”) brief provided the Court information about the application of digital fingerprinting and watermarking technologies to peer-to-peer (P2P) networks.

“We felt that we could provide relevant information to the Court about our technology,” said Audible Magic CEO Vance Ikezoye. “We believe that the use of digital fingerprinting can play a key role in the legitimization of P2P networks, which helps meet the needs of consumers while ensuring compensation to rights holders.”

The amicus brief was filed in support of neither party and did not take a position on the legal issues of the case.

“We’re a technology company, and we’ve provided factual, objective information to help the justices in their decision making process,” stated Ikezoye.

Major studios and labels sued Grokster, and Morpheus’ parent company StreamCast Networks, in 2001, contending they should be held responsible for illegal trading of copyrighted files using their P2P software programs. Lower courts ruled in favor of the P2P companies.

Audible Magic Corporation is the leading provider of content management and anti-piracy services. Its patented content identification technologies and extensive reference database of audio and video content enable the company to monitor, track, manage, filter and monetize multi-media digital content. The company’s core copyright-sensing technology, CopySense®, accurately identifies digital or broadcast media content based on the perceptual characteristics of the content itself. Built on a patented electronic fingerprinting process, the technology is robust, efficient, and massively scalable. Recognized throughout the music and video industry as the de factor leader in identification services, Audible Magic is headquartered in Los Gatos, California. Its customers include Web 2.0 websites, CD/DVD replicators, peer-to-peer networking companies, internet service providers and universities, which span the media and entertainment industries, major business, governmental and educational institutions markets.

For more information, visit Audible Magic’s website at www.audiblemagic.com or contact:

Audible Magic Media & Analyst Inquiries

Jay Friedman
Vice President of Marketing and Product Management
408-399-6405 x238
[email protected]