CopySense Appliance Privacy Statement

Collection of Information

In the course of using the Audible Magic CopySense Appliance, information
about the use of Peer-to-Peer technology on your network is gathered by the
appliance. This information includes but is not limited to Protocols, Bytes, IP
Addresses, Ports, Dates and Times of Transfers.

In addition, in order to intelligently block copyrighted material; the
CopySense technology on the Appliance may access a remote database of registered
copyrighted content. This access provides the Appliance the ability to
intelligently block copyrighted file transfers. The CopySense Appliance never
transfers actual data from the file transfers — it only calculates and
transmits measurements used to match against the remote database. These
measurements are not capable of being used to recreate the original file.

Based upon this information, the Appliance acts autonomously and without user
intervention to execute the rules designated for the appliance.

Transmission and Internal Use of Information

From time to time, as Audible Magic deems necessary, certain data will be
collected from each Appliance. The information collected is for statistical
purposes and collected in order to help Audible Magic determine trends in
Peer-to-Peer technology; improve the efficiency and/or accuracy of the Appliance
and to help Audible Magic conduct tests on the quality of its operation.

External Use of Information

Audible Magic may disclose to third parties the P2P transaction information
collected. This information is generally disclosed in the aggregate and may
include but is not limited to titles of copyrighted works, file types, bytes
transferred and time of day. This information, whether aggregated or otherwise,
will not include personal information related to an identified person such as
name, e-mail or postal address or other contact information and in no case will
the information contain data that will identify the specific CopySense Appliance
customer or their users. Audible Magic will only disclose the name of the
CopySense Appliance customer or their identifying information with that
customer’s express written consent.

Audible Magic collects and maintains typical business information about your
organization as necessary for communication and to conduct and maintain our
business relationship with your organization. Audible Magic does not rent, sell,
or share any information about your organization with third parties or
nonaffiliated companies except, with your organization’s permission, to
provide products or services requested by your organization. Any other release
of information to third parties will occur only with your organization’s
permission subject to the following exceptions:

Audible Magic will release information to respond to governmental requests,
subpoenas, court orders, or legal process, or to establish or exercise our legal
rights or defend against legal claims.

Audible Magic will release information in the event of a merger with a third
party or an acquisition by a third party or similar change of control of Audible
Magic.

Changes to this policy

Audible Magic may decide to change this Privacy Policy from time to time. In
the event of a change, Audible Magic will provide notice to your organization so
you are always aware of the information Audible Magic collects, how it is used,
and under what circumstances it is disclosed.