Immediatek, has announced that it is acquiring key assets of LCD Interactive, Inc., a private corporation that has developed breakthrough technology enabling Internet music fans to download standard MP3 files directly to their CD burners while simultaneously protecting the artists' copyrights.
Immediatek had previously formed a strategic alliance with LCD Interactive to exclusively market and develop the software.
Acquisition of the assets, including the CD burning software and LCD's flagship web site, www.twobigtoes.com
, will be accomplished through a stock transaction and should complete within days.
Additionally, Paul Marin, CEO of LCD Interactive, has been added to Immediatek's board of directors and will assume an executive operating role in the company.
Immediatek has recently signed agreements to license the technology to several independent music labels, and is actively pursuing licensing deals with popular online music sources and major record labels.
Immediatek's CEO Zach Bair believes the proprietary "one-click" disc burning technology could provide a standards-based solution for the music industry's burgeoning piracy problems with downloadable music and other media.
"With the recent court decisions involving music piracy, popular peer-to-peer software applications, such as Kazaa, are having to take another look at their business models," says Bair. "While those guys are struggling to come up with a solution, we already have a working and proven technology which can be easily integrated into existing e-commerce web sites. It's a true "one-click" solution, and with it, artists, labels, and music distributors have a method to control copyrights utilizing standard MP3 files. No additional encryption is necessary."
In other news, Immediatek has announced the completion of a reverse stock split in an effort to improve its liquidity, and is excited to announce its new stock symbol, ITEK, which takes effect today.
"The reverse split is part of a series of actions, including the acquisition of the CD burning technology, designed to put the company on better footing going forward," said Bair.