Universal Music Faces Lawsuit Over PIN on Bon Jovi Album
By Lingling Wei for the Wall St. Journal

At issue is a promotional program, called "American XS," that was announced on Sept. 16 by Universal Music in connection with the Bounce release -- scheduled for Oct. 8 in the U.S. The plan is based around a unique PIN code, or serial number, that will come with every album shipped.

The buyer of the CD can type in the number at the band's Web site (www.bonjovi.com). Then, after providing personal information including age, gender and location, the owner will be registered as a member who will be regularly notified by e-mail of "Bon Jovi exclusives," which may include the opportunity to chat with the band.

While Universal Music didn't mention DownloadCard in its announcement of the "American XS" plan, DownloadCard contends the plan is "precisely the program created by DownloadCard ... and offered to" Universal Music for the Bounce release. Universal Music, though, said in July it wouldn't use the technology for the album release, according to DownloadCard's court filing.

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Universal Music Faces Lawsuit
Over PIN on Bon Jovi Album
By LINGLING WEI
DOW JONES NEWSWIRES

NEW YORK -- Vivendi Universal SA's Universal Music Group is being sued by a New York technology company for allegedly infringing upon its antipiracy technology, setting up a potential roadblock for the release of the new album "Bounce" by the band Bon Jovi.

DownloadCard Inc., a provider of antipiracy services, on Wednesday asked a federal court judge in New York to enjoin the world's largest music publisher from engaging in any promotion or marketing efforts that use what DownloadCard says is its proprietary technology.

At issue is a promotional program, called "American XS," that was announced on Sept. 16 by Universal Music in connection with the Bounce release -- scheduled for Oct. 8 in the U.S. The plan is based around a unique PIN code, or serial number, that will come with every album shipped.

The buyer of the CD can type in the number at the band's Web site (www.bonjovi.com). Then, after providing personal information including age, gender and location, the owner will be registered as a member who will be regularly notified by e-mail of "Bon Jovi exclusives," which may include the opportunity to chat with the band.

While Universal Music didn't mention DownloadCard in its announcement of the "American XS" plan, DownloadCard contends the plan is "precisely the program created by DownloadCard ... and offered to" Universal Music for the Bounce release. Universal Music, though, said in July it wouldn't use the technology for the album release, according to DownloadCard's court filing.

"The case is based on misappropriation of trade secret and theft of idea" said Stephen Kramarsky, an attorney at Dewey Pegno & Kramarsky LLP who represents DownloadCard. Mr. Kramarsky said the company has invested hundreds of thousands of dollars in this anti-piracy technology.

The case will be heard next Thursday in front of Judge Charles Haight Jr. in the U.S. District Court in the Southern District of New York.
"If he determines that the CD release uses the DownloadCard technology, which we think he will, he'll issue a preliminary injunction on the release," Mr. Kramarsky said.

A spokeswoman at Universal Music declined to comment.

In addition, DownloadCard is also seeking compensatory damages from Universal Music. The amount will be determined at trial and could be more than $750,000, according to the suit.

Write to Lingling Wei at lingling.wei@dowjones.com
Updated September 25, 2002 10:15 p.m. EDT

Universal Music Faces Lawsuit