This patent describes a process and streaming server for encrypting a datastream to a virtual smart card client system. The patent generally coverssoftware-based "virtual smart cards" on a set top box, personal videorecorder (PVR), PC or mobile device that manage the flow of data over anetwork. The suit was filed in U.S. District Court for the Western Districtof Washington in Seattle.

Widevine had previously filed another lawsuit against Verimatrix thataccuses the Verimatrix Video Content Authority System (VCAS) of infringingWidevine's key patent relating to real-time encryption. Widevine laterasserted a second claim for infringement of another patent in that suit.That suit is continuing. Widevine has important intellectual property inthe field of content protection with a robust patent portfolio of more than35 issued patents and approximately 90 domestic and international patentspending.

"With this third claim for infringement in the new suit, we are validatingour customer's and investor's trust and investment in the strength ofWidevine's intellectual property portfolio while sending a clear message todirect and indirect infringers of our patents that they must respect ourintellectual property," said Mani Aliabadi, Widevine's General Counsel.

This is the third patent infringement claim filed by Widevine againstVerimatrix. In August of 2007 Widevine filed its initial patentinfringement lawsuit against Verimatrix for its 7,165,175 patent. In Mayof 2008 Widevine added its 7,376,831 patent to the on-going 7,165,175litigation. The existing patent litigation continues to progress throughthe court appointed milestones and the following is an update on recentlitigation activity.

As expected, the PTO recently granted an inter partes reexamination ofWidevine's 7,165,175 patent for selective encryption patent, one of the twopatents in that first lawsuit. While over 90% of such reexaminationrequests are granted, fewer than 15% typically result in all claims beingcancelled. The PTO only granted reexamination concerning narrow issues inthe petition, and stated that most of Verimatrix's arguments werecompletely without merit. Verimatrix has not requested reexamination ofWidevine's other 7,376,831 patent in that suit.

"Widevine is confident that the selective encryption claims will bere-confirmed by the Patent Office. The reexamination is based on prior artthat the Patent Office has already considered in connection with patent no.7,376,831 and found not to be a problem. We welcome this opportunity forthe PTO to reconfirm the value and strength of Widevine's selectiveencryption patent and to eliminate any future questions of validity," saidMr. Aliabadi.

Darby and Darby, a globally recognized law firm specializing inintellectual property rights, with offices in New York, Seattle,Washington, D.C., San Jose and Frankfurt, continues to represent Widevine.

About Widevine Technologies, Inc.

Widevine is the only provider of multiplatform and multiformat DCAS, DRM,digital copy protection and forensic watermarking solutions for contentowners, telco, cable, DTT and internet service operators.

More than 130 service providers and 160 web properties utilize Widevinesolutions to enable the acquisition and distribution of premium studio andbroadcaster content to a wide range of consumer devices. Widevine makes itpossible to protect internet and pay TV revenues while creating new serviceopportunities through the secure distribution, identification and trackingof digital content.

An innovator and holder of more than 30 patents, the company continues todevelop innovative technologies and solutions that solve the multiplatformand multiformat content protection and digital forensic needs of contentowners and operator globally.

Widevine is a privately held corporation headquartered in Seattle, WA,funded by Cisco Systems, Inc., Charter Ventures, Constellation Ventures,Dai Nippon Printing Co., Ltd (DNP), PaceSetter Capital Group, PhoenixPartners, TELUS (NYSE:TU) and VantagePoint Venture Partners.

For more information: www.widevine.com.

All Rights Reserved. Widevine, Widevine Cypher, Cypher Virtual SmartCard,Cypher VOD, Cypher DCP, Cypher Broadcast, Cypher Express and WidevineMensor are either registered trademarks or trademarks of WidevineTechnologies, Inc. All other trademarks and trade names are the property oftheir respective owners. No express or implied warranties are provided forherein and all specifications are subject to change. The descriptions ofWidevine Technologies' patents and other intellectual property herein arenot intended for use in a legal proceeding to interpret or limit the scopeor meaning of the patents or their claims, or indicate that a Widevinepatent claim(s) are materially required to perform or implement any of thelisted items.