Barry Willis

With $60,000 in award money as incentive, the hacker community is helping the <A HREF="http://www.sdmi.org/">Secure Digital Music Initiative</A> find out just how secure six proposed watermarking technologies really are. On October 12, as SDMI representatives were <A HREF="http://www.stereophile.com/news/10870/">testing</A&gt; the audibility of three of the watermarks, the organization announced the closure of a month-long challenge it had offered hackers: break the code. According to the terms of the challenge, each defeated technology will mean $10,000 to a successful hacker.

L<I>ast night I saw him on the stair&mdash;<BR>the little man who wasn't there.<BR>I saw him there again today;<BR>oh, how I wish he'd go away.</I>

Mastering engineer Denny Purcell let out a long sigh. "Does anyone in this room really believe that any of this is going to do any good?" he asked. Of the eight or nine people&mdash;each with decades of experience in the music and/or audio industries&mdash;hanging out at Georgetown Masters Studios in Nashville for SDMI's Phase II listening tests, no one said "Yes." The consensus: The watermarking issue will probably be dead and forgotten within a year.

For the 109th convention of the <A HREF="http://www.aes.org/">Audio Engineering Society</A>, the main floor of the L.A. Convention Center was transformed into a bazaar of new tools for audio professionals&mdash;but the panel discussions upstairs were where the real action took place. On Friday, September 22&mdash;just an hour before researchers Dr. Stanley Lipshitz and John Vanderkooy of Ontario's University of Waterloo presented a paper offering a mathematical proof for the "imperfectability" of one-bit delta-sigma recording systems&mdash;Sony Corporation issued a clarification of the technical standards for its Direct Stream Digital technology, the basis of the Super Audio Compact Disc. DSD, it now appears, is a one-bit technique as it applies to consumer playback systems, but uses a multi-bit PCM quantizer [<I>presumably within a delta-sigma converter negative-feedback loop; see an article on this subject in the forthcoming November issue of </I>Stereophile<I>&mdash;Ed.</I>] at the recording and mastering ends of the business. (The Lipshitz/Vanderkooy paper is available as AES preprint #5188.)

Italian audio journal <I>Fedelta' del Suono</I> (Sound Fidelity) has honored American startup <A HREF="http://www.redrosemusic.com/">Red Rose Music</A> with "Product of the Year" awards for the company's Model 3 preamplifier and Model 2 power amp. The award is especially noteworthy in view of the fact that the monthly publication, based in Terni, Italy, does not normally f&#234;te products from new companies.

Venture capital group Shared Ventures is now the legal owner of the assets of <A HREF="http://www.wadia.com/">Wadia Digital Corporation</A>. Wadia's majority shareholder, Shared Ventures, acquired the company's name, intellectual property, and physical inventory at a public auction in Minneapolis on September 12. The law firm of Siegel, Brill, Greupner, Duffy, and Foster, P/A, of Minneapolis, managed the auction. Originally scheduled for late August, the auction was postponed for two weeks after a flurry of interest following the publication of an official notice in the <A HREF="http://www.startribune.com/"><I>Minneapolis Star-Tribune</I></A>.

Audio manufacturers who know what's good for them avoid stepping on the toes of <A HREF="http://www.bose.com/">Bose, Inc.</A> The Framingham, Massachusetts&ndash;based corporation is renowned for it ruthless marketing and zealous protection of its patents.