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Motorola Buys DRM Firm SecureMedia

Motorola, in a move to fill out its IP video portfolio, will acquire SecureMedia, which develops software-based digital rights management systems for Internet-based video, for an undisclosed amount.

SecureMedia will become part of Motorola's Home & Networks Mobility business. The deal is expected to close in the first quarter of 2010.

SecureMedia, founded in 1996 and based in Natick, Mass., was acquired in 2007 Cavalier Telephone and TV, a competitive local exchange carrier. Customers of the SecureMedia Encryptonite ONE system include media companies and service providers worldwide including Sony, Reeltime Infotainment, China Data Broadcast and Cavalier.

With the acquisition, Motorola said it will be able to offer both standalone and integrated software security solutions to IP video customers.

"Motorola continues to invest in our video infrastructure solutions as our customers evolve their networks to handle the explosion in consumer demand for video," said John Burke, senior vice president, Motorola Home & Networks Mobility business. "SecureMedia has superior expertise in IP-based video security and digital rights management -- critical capabilities for the emerging Internet Era of Television, where video content is mobilized across the three screens of TV, mobile phone and PC."

SecureMedia's software systems secure digital content over multiple platforms to multiple devices, including set-top boxes, wireless handsets, PCs and portable entertainment devices. According to the company, the Encryptonite ONE system has been approved by all major film studios and TV broadcasters.

"As part of Motorola, the SecureMedia team will continue to expand the reach of our award-winning digital security solutions by gaining new customers and partners in business segments such as cable and we will also continue to support our current customers and partners," SecureMedia chief operating officer Fred Ellis said in a statement.

Motorola is in the midst of soliciting bids for the Home & Networks Mobility unit, which includes cable set-tops, video transmission equipment, VOD systems and wireless infrastructure.