CNN Money/Business 2.0 reports that Navio, a Cupertino California startup specializing in DRM technology, is gaining some prestige for their efforts in reverse-engineering Apple's Fairplay DRM technology.
Already, early Navio customers like Fox, Sony BMG Music Entertainment, Walt Disney Internet, Cingular and Verizon Wireless have been experimenting with Navio's software to sell digital content. Disney, for example, will be using Navio to power content sales on its website promoting the Pixar/Disney animated blockbuster Cars.
The report does not elaborate on Steve Jobs' reaction to Disney using Navio, or what his role was in the process surrounding the decision to use Navio's technology.
Navio plans to launch software by the end of June that will allow its customers to distribute copy-protected videos that are compatible with the iPod. Movie and Music studios are apparently eagerly awaiting the arrival of the software.
Hollywood, which has seen Apple rapidly seize control of the paid music-download business, is especially eager for an alternative to iTunes. In fact, they'd like to run their own stores.
Navio's efforts were first reported in November 2005. RealNetworks has also attempted to reverse-engineer Fairplay, and has had varied success. This is the first time that any reverse-engineering attempt of Fairplay has seen this level of interest from movie and music studios.
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