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					Press Information –
January 3, 2008

Philips’ groundbreaking watermarking technology aims to fight HD video piracy

LAS VEGAS – Hoteliers have long enjoyed an early-release movie window allowing them to
entertain their guests with box-office hits prior to release on DVD. But increasing concerns about
piracy have led certain content owners to withhold high-definition media from this advance window.

In an effort to deter unlawful copying of these movies, Philips is leading the industry by developing
a digital watermarking solution for the hospitality market, showcased at the 2008 International CES
Show.

Philips Professional and Business Solutions products already utilize highly-effective Pro:Idiom™
encryption technology to secure data from the content source to the television. However, some
unscrupulous viewers may aim a video camera at the screen and make a copy— but this new
watermarking technology enables video providers and content owners to track the location and time
of such piracy to aid in their content security enforcement efforts.

The new Philips VTrack™ watermarking technology mitigates this content-protection ―Analog
Hole‖. VTrack embeds video with an invisible watermark that identifies the time, place and location
of the viewing. By making a (camcorder) copy of video material traceable and thereby decreasing the
risk of piracy, Philips diminishes content providers’ concerns and is working to secure HD media
for early release to hoteliers.

Philips Professional and Business Solutions will introduce this technology in all of its new models.
Studio executives have applauded this Philips initiative to introduce this additional layer of content
protection, enabling HD Pay-TV enjoyment for hotel guests.

VTrack does not interfere with the viewing experience and is imperceptible to the human eye.
However, the watermarking data can be retrieved from the illegal copied material using a dedicated
watermark detector— even if the video is camera-captured, compressed and severely degraded. The
data pinpoints the time and even the individual television from which the video was recorded. Thus,
if a video shows up on the internet or on pirated DVDs, content owners and law enforcement
agencies may use the VTrack watermark data to determine where and when it was recorded — this
way content pirates expose themselves to much greater legal risk. .

Philips is working with pay per view providers in the hospitality industry to ensure that any
watermarking solution will work seamlessly with their infrastructure.

―We are very pleased to see a market leader like Philips propose a new solution for an issue that is of
increasing importance to the hospitality industry. VTrack represents the first commercially viable
watermarking technology that we will utilize in our efforts to develop a solution that will meet the
needs of the hospitality pay per view industry and the studios.‖ said Scott Young, Chief Marketing
Officer for LodgeNet Entertainment Corporation.
VTrack is part of Philips’ broad Content Identification product portfolio which is made up of state-
of-the-art solutions and services to optimally sell share and distribute audio and video content with
respect to copyrights. Philips watermarking and fingerprinting technology is being used by major
Hollywood studios and Music labels for protecting their content assets.

―This is the first commercial integration of forensic watermarking in TV-sets in the industry,‖ says
Wim Bus, Business Development Director of Philips Content Identification. This milestone will be
followed by many others as VTrack is available for the whole hospitality and Pay-TV market.

Philips will be the first manufacturer to offer a watermarking solution in its hospitality sets in early
2008.

For further information please contact:
Philips                                                           Manning Selvage & Lee
Lindsay Woods                                                     Erin Hill
770-821-2392                                                      404-870-6833
lindsay.woods@philips.com                                         erin.hill@mslpr.com



Philips Watermarking
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About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in
healthcare, lighting and consumer lifestyle, delivering people-centric, innovative products, services
and solutions through the brand promise of "sense and simplicity". Headquartered in the
Netherlands, Philips employs approximately 128,100 employees in more than 60 countries
worldwide. With sales USD 34 billion (EUR 27 billion)in 2006, the company is a market leader in
medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, as
well as lifestyle solutions for personal wellbeing. News from Philips is located at
www.philips.com/newscenter.
                                                   ###
Pro:Idiom is a trademark of the Zenith Electronics Corporation.

				
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