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April 1, 2013
The Security Company for All Intellectual Property
© 2010 Piracy Control Technology, Inc.
Contact: Don Russell
P: 312-846-1681
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
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
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
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
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
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
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
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
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
ContentInnovators
ContentProviders
ContentProtectors
ContentDistributors
ContentConnectors
The Current Landscape
Where we fit in…
Source IFPI : “When piracy is controlled revenues increase”
“We all must improve the way we secure our most
valuable assets.”
-Paul Rosenberg, manager of Eminem
IP Security
PC Tech will lessen the “friction” in the current landscape.
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.
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
$$
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
Revenue Projections
Note: Revenue Projections do not reflect % of new revenue generated for
Multimedia clients.
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
Investment Opportunity
Resources to develop Beta and commence testing
Seeking
$2 Million over
a
12 month
period
Year
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
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
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.
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
47 West Polk St. Suite 135
Chicago Ill 60605
Contact: Don Russell, CEO
Phone: 312-846-1681 Fax: 312-846-6172
Email: Info@piracycontroltechnology.com
www.piracycontroltechnology.com
Thank You
© 2010 Piracy Control Technology, Inc.

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Piracy Control Technology Company Overview

  • 1. April 1, 2013 The Security Company for All Intellectual Property © 2010 Piracy Control Technology, Inc. Contact: Don Russell P: 312-846-1681
  • 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
  • 11. ContentInnovators ContentProviders ContentProtectors ContentDistributors ContentConnectors The Current Landscape Where we fit in… Source IFPI : “When piracy is controlled revenues increase” “We all must improve the way we secure our most valuable assets.” -Paul Rosenberg, manager of Eminem IP Security PC Tech will lessen the “friction” in the current landscape.
  • 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
  • 15. Revenue Projections Note: Revenue Projections do not reflect % of new revenue generated for Multimedia clients.
  • 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
  • 17. Investment Opportunity Resources to develop Beta and commence testing Seeking $2 Million over a 12 month period Year
  • 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
  • 22. 47 West Polk St. Suite 135 Chicago Ill 60605 Contact: Don Russell, CEO Phone: 312-846-1681 Fax: 312-846-6172 Email: Info@piracycontroltechnology.com www.piracycontroltechnology.com Thank You © 2010 Piracy Control Technology, Inc.