Microsoft Prepares MS Audio Challenge to MP3

Computergram International, March 24, 1999

Microsoft Corp and some large players from the music and technology world are set to challenge the emerging MP3 internet music file format with their own "approved" technology. MP3 has frightened the traditional music recording industry, and has been criticized by the Record Industry Association of America for simplifying music piracy.

But MP3 has already created too much interest for the industry to ignore. Used for downloading music recordings from the internet, the format has already encouraged a crop of portable players, such as Rio from Diamond Multimedia Systems Inc, and widespread consumer interest. Last year, the RIAA filed an unsuccessful lawsuit against Diamond in an attempt to stop Rio and similar devices from reaching the market. According to various reports, Microsoft is expected next month to launch MS Audio 4.0, which is likely to offer users downloads that are twice as fast as MP3 with better music quality and smaller file sizes. It will also include technology called "Secure ASF" (advanced streaming format) for preventing illegal duplication. MS Audio is likely to be included in a future release of the Windows Media Player, and may also play on Windows CE devices. Microsoft is said to have been holding meetings with the music industry in Los Angeles to develop a common standard for encryption. In December, the RIAA announced a Secure Digital Music Initiative, to combat MP3 piracy by creating a digital music standard with copy-protecting 'watermarks'. Earlier this year Microsoft Corp took a stake worth $15m in Reciprocal Inc, a digital rights management technology firm formerly known as Rights Exchange Inc. Will Poole, Redmond's senior director of business development said Microsoft would use Reciprocal's technology for anything from documents and games to music and video.