This document provides an overview of Piracy Control Technology, a company that aims to combat piracy and secure intellectual property. It outlines their proprietary technology that uses quantum key distribution and encryption to securely transmit and store multimedia content. Piracy Control Technology seeks funding to develop their beta products and testing, with the goal of providing a secure platform and services to the multimedia industry.
2. Piracy Control Technology
Company Overview
•Provide Protection for all
Multimedia IP & content from
Piracy & Unlicensed use
•Provide proprietary, disruptive
DRM enforcement technology & a
new IP Security Platform
•Provide B2B QKD & MCV
Technology 100% secure
business environment
•Provide Non-Transferable
Intellectual Property beyond
consumer point-of-purchase
TM
3. Piracy Control Technology
Vision
“This initiative is one of the things that will fuel the shift in the
mindset of American consumers.”
- Glen Barros, chief executive, Concord Music Group
Restore
revenue lost
to
Intellectual
Property
theft.
TM
4. Piracy is a Global Problem
By 2020 approximately 80% of all
intellectual property sold will be counterfeit
70% of Intellectual
Property sold in the
U.S. is counterfeit or
obtained through
unlicensed vendors.
76% of Consumers
who purchase
unlicensed Intellectual
Property are unaware
of the consequences.
2011 Piracy Market
Source: U.S. Department of Commerce
5. Multimedia Industry
Annual Losses due to Piracy…
MUSIC
$13 BILLION
Video games
$8 BILLION
$41 BILLION
Movies
$20 BILLION
•$41B in lost taxable revenue in America
•2.7B in lost wages in America
•71,050 jobs lost in America
6. The Problem
Digital Rights Management – Poorly Implemented,
Reverse Engineered and Abandoned
6
• DRM developed by insiders (ex. Apple
FairPlay) and not fully accepted by industry
• Poorly implemented (ex. Sony BMG CD rootkit
scandal)
• No industry association or coalition in place
focused on securing IP
• DRM completely abandoned and artists losing
billions of dollars annually
Encryption/DRM has been based on classical
(mathematical) techniques. Math-based
approaches will always be vulnerable to raw
computing power (brute force attacks) and to
exploitation of flaws in the software.
CLASSICAL APPROACH
Nearly all classically-based DRM
measures have been reverse-
engineered, hacked or broken
entirely.
CLASSICAL FAILURE
7. Security in the Age of Big Data
100% Secure Transmissions with Quantum Key Distribution – a property of quantum physics that cannot be reverse
engineered or tampered with.
The Solution
QKD Used with Advanced Cryptography
to Secure Intellectual Property
100% Secure Transmission
from the Studio to the
SafetyNET Admin Cloud
8. 8
The SafetyNET System
Combining Science, Technology and Engineering
Securing The Studio Securing Devices
Admin Cloud
(Media Room)
Quantum Key Distribution
Encrypted with AES-256
Workstation
SafetyNET Plugin
1. The Workstation is secured
2. QKD Connection is created to the Media
Room
3. Files are encrypted and stored remotely
4. The completed recordings are encoded
with the MCV file type.
SafetyNET Conversion
1. SafetyNet software contacts the Media
Room
2. Global Device List is checked and the
device is granted access to the user’s
library
3. Downloaded MCV files are stored on the
device
SafetyNET Plugin
SSL Encryption with AES-256
Music Store
Music Player
TM
9. The SafetyNET Products
The SafetyNET “Eco-System” Secures Intellectual Property
SafetyNET
Admin Software
& QKD Hardware
•100% Secure B2B
Platform
•MCV files sent
securely to the Cloud
•Stored in encrypted
database
SafetyNET
Studio Plug-in
•Secures Workstation
•Authenticates User
•Initializes Connection
SafetyNET
Conversion
Software
•Export to MCV
(Media Content fiVe)
•Proprietary codec
that secures the file
SafetyNET
Connect &
Push
•Quantum Keys
Distributed (Qbits)
•100% Secure
Connection Created
The SafetyNET System provides an end-to-end solution to
package, transmit, and securely store intellectual property.
TM
10. 256
Multimedia Companies
IP/Content Providers
13,014,469
IP/Content
Licensed(2011)
CD/DVD/Video Games
U.S. Niche Market
Sizable Revenues Opportunity
with Modest Integration
42,000
AV&D Studios
Innovate Content
42KIP/Content
Providers &
Innovators need
our technology
13M Products
licensed annually that
need to be protected,
converted & pushed
$37 M
Potential
Revenue
Note: With only 5% integration
19.4M
12. Competitive Advantage
PC Tech, will introduce a B2B security
platform comprised of QKD & MCV
Technology to the multimedia industry to
combat piracy, ending unlicensed use and
counterfeiting
Today, companies still rely on the
"classical approach" of protecting
IP, which makes these products
vulnerable to unlicensed use and
counterfeiting.
13. PC Tech Business Model
Products
Studio Plug-in
Audio, Video &
Design Studios
Core
Services
Risk
Assessment
B2B Security
Platform
File Conversion
Multimedia
Industries
Distributors
& Retailers
Upstream
Customers
Downstream
Customers
$$
14. SafetyNET
RISK ASSESSMENT
Basic Fee:
$25K
PCTech Cost:
$5K
Gross Margin: 80%
SafetyNET
SECURITY PLATFORM
(Design/Construction/
Integration/Training)
Sale Price:
$2.5M
PCTech Cost:
$875K
Gross Margin: 65%
(Plus % of New Revenue)
SafetyNET
PLUG-IN
Sale Price:
$1,100
PCTech Cost:
$25
Gross Margin: 97%
SafetyNET
CONVERTER/PUSH
(AV Files to MCV Files)
Conv. Fee: $2 p/unit
(IP/Content Provider)
Push Fee: $1 p/unit
(Distributors/Retailers)
PC Tech Revenue Model
16. Build
Laboratory
Day 30
R&D Product
Day 120
Build Model
Eco-System
Day 150
Testing
Day 180
Integration/
Training
Day 260
Relationship
w/Leading
Quantum
Physicists
Agreement
w/Chapman
University
Relationship
w/Sony
Music,
Universal
Music Group
& Warner
Music
Relationship
w/State &
Federal
Agencies
Milestones & Timeline
18. Investment Highlights
How we benefit the current landscape…
“We are doing all we can
to provide consumers
with…alternatives to
piracy”
-Rob Wells, Universal
Music Group
100% IP Protection
100% Secure Admin
Platform
Modern DRM
Enforcement
Increased Sales Revenue
Secures Royalties 100%
100% Non-transferable
content
“Ultimately, if nothing is done, we just won’t
be here”
–Eminem Hip Hop Artist
Sources:
Pollstar.com, IPIF.org, RIAA.com, Grabstats.com, Go-gulf.com, Anythingresearch.com, Havocscope.com, The-numbers.com, Geek.com
New IP Watchdog
19. Experienced Management Team
Nathan Tumulty, MCSE
Chief Technology Officer
Co-Founder
Don Russell
President/CEO
Co-Founder
David Ubeda, M.S.
VP/Business Development/
Investor
June Barrett
Investor Relations/
Business Relations
Jamie Colon
Financial Strategist/
CPA
Sean Mulroney
Legal Counsel
•Attended Columbia College and UOP
Chicago
•Owner of PM Records w/Distribution
thru Universal/Fontana
•Director of Marketing for Rockstar
•Director of Technology for Expo
Theater Productions
Mr. Russell has owned and operated
several companies, and worked closely
with some of the industry’s top talent.
•Successful Entrepreneur
• Philanthropist
•Educator
•Speaker
Mr. Ubeda owns and operates
World Class Acquisitions a real
estate development and investment
company, in the Northwest Suburbs
•Founder iDFX Studio
•Attended Westwood College
•Co-Founder of Viridis Group
•Proven record of success designing
and developing systems for top tier
companies such as AON, Anheuser-
Busch, and numerous small
businesses.
•BSBA at Roosevelt University
•Business Developer Consultant
with over 30 years of business
experience
•Worked with over 20 businesses
developing business strategies.
•Possesses organizational qualities,
endless resources and commitment
to achieve perfection.
•Loyola University of Chicago School of
Law
•Entrepreneur – Licensed and owned
several tech/entertainment based
startups.
•Owner of law practice specializing in
litigation, corporate startups, city
business licensing and entertainment
•BS in Accounting at Southern Illinois
University (SIU)
•Financial Accounting and
Bookkeeping services for GVW
Corporation
•Provides quality service in an
integrity filled, team-oriented
environment
20. Expert Development Team
Dr. Yakir Aharonov
Implementation
Quantum Computing
Dr. Jeff Tollaksen
Research & Development
Quantum Engineering
Dr. Fred A Wolf
Director of New Media
Quantum Studies
Dr. Joan Daemen
Research & Development
Cryptography
•AKA Dr Quantum
•70’s a member of Lawrence Berkeley
Labs
•1982 U.S. National
•Book Award in Science
•Metallic Vapor Lasers
•White-light Photometric
Measurement System
•Director, Center of Excellence in
Quantum Studies, Chapman
University
•Principal Investigator: Office of
Naval Research
& National Institute of Standards &
Technology
•Founder & Director , Center for
Quantum Studies, George Mason
University
•1998 Wolf Prize
• Received 2008 Medal of Science
•Director of Computational
Science & Engineering
•Co-discovered the Aharonov –
Bohm Effect
•Advisor to Stephen Hawkins
•PhD from Katholieke Universiteit
Leuven, Belgium
•Co-designed the Rijndael Cipher
with Vincent Rijman
•Author of The Design of Rijndael:
AES - The Advance Encryption
Standards and Analysis and Field
Test of The Hydraulic Performance
of Cement Grout Borehole Seals
•Chapman University is ranked the 6th Best Regional University in the
nation in the US News and World Reports' 2013 Ranking of Best Colleges.
•The new showcase laboratory to display the components of the initial
Eco-system design will be housed at the Chapman University
Computational Science building on the campus.
21. Strategic Relationships/Advisors
Robert Steele
Cook County Commissioner/
President Pro Tempore
Kerry Gordy
Motown Records
Craig Nobles
Swagg Digital Media
Interscope Records
George Daniels
President of Independent
Retailers
Griff Morris
Legal Counsel Amazon
Former VP of Grammy Foundation
Clyde El-Amin
Educator/
Former College President
Keith Lee
President ADR Technology
Chairmen Farther Reach
Dick Durbin
US Senator / RIAA Activist