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Start-Up Licenses Content to Consumers

A Silicon Valley start-up plans to launch an online commerce system that aims to give consumers more power over digital media downloads. What does that mean? The company, Navio Systems, sells software to content providers that lets them sell the rights to pieces of content to consumers rather than downloads or individual files themselves. The product also lets companies use a variety of different online distribution methods--from blogs to fan sites--and gives consumers access to the content from PCs, phones or nearly any other Web-enabled media device. As it is, consumers have less rights and lots of restrictions when it comes to (legally) buying content on the Web today. For example, lost copies of downloaded music or games usually mean consumers have to buy it again. With Navio, consumers could download files again and again free of charge because the consumer effectively licensed when he or she bought it. This is very pro-consumer and very cool and all, but Navio's biggest challenge is going to be signing up content owners to use its platform; so far, its customers are Walt Disney's Internet Group, Atom Entertainment Corp. and Fox Sports Mobile. Navio did say its technology would one day allow any Navio-powered online music file to play on the iPod, which to date only plays purchased downloads from Apple's iTunes Music Store.

Read the whole story at Associated Press »

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