AT&T to use Vobile technology to thwart piracy

AT&T (T) may soon beef up its antipiracy arsenal. The biggest U.S. telephone company is considering technology that could give it a heads-up when customers are watching partners' copyrighted video, BusinessWeek has learned. AT&T is in talks with NBC Universal and Walt Disney (DIS) about using the knowhow to guard against illegal distribution of their shows and films.

By embedding the technology, a so-called content recognition system made by tiny Vobile, AT&T could prevent users of its network from distributing or viewing copyrighted material or force them to watch it in ways sanctioned by the content owner. In effect, the company would create a kind of no-piracy zone where studios and producers would feel safe distributing content, knowing they'd be paid for its use. BusinessWeek has also learned that AT&T, NBC, and Disney have invested a combined $10 million in Vobile.

Business Week article