>ENTERTAINMENT WATCH>

TRANSCRIPT OF MAJOR LABEL ANTI-PIRACY PANEL ADDRESS BY FURK ZHENK (KILOPOP!) AT SXSW - MARCH 16, 2001

Good afternoon.

[BOOS]

Same to you.

[MORE BOOS]

Look...Marjorie wanted me on this panel, so at least have the decency to honor her judgment and hear what I have to say.

[CROWD SETTLES DOWN]

Alright. Thank you. So yeah...I've become a pariah lately by simple doing what you all should have addressed ages ago. You all failed to come up with an adequate copy protection scheme, so I had to do something unilaterally before my whole revenue stream evaporated. Call it vigilantism if you like...I call it protecting my intellectual property...

[ANGRY VOICE FROM THE AUDIENCE]

"So you released a virus into the Internet..."

No...the Nap-Stir-Fry 'bot' is not a virus. All it does is search for and delete all our MP3's wherever it finds them. Very effectively - I might add - you can't find Kilopop! MP3's out there, and if anyone tries to post one, it's half-life is about three minutes before it's destroyed...

[ANOTHER ANGRY VOICE FROM THE AUDIENCE]

"Along with an innocent person's entire hard drive..."

Innocent?...that's debatable since they stole my music in the first place. And actual incidents of hard drive damage have been few...one in 200, maybe, but the fear of this happening is an extra deterrent to copying. If someone thinks it's cute or cool or punk to copy my songs...if they think they are getting away with something...well, now they run the risk of losing all their data...so maybe they'll think twice about doing it. Again...I am sick and tired of taking the heat for fixing a problem that you all were too slow or too stupid to remedy. Your lawsuits crawl along, your committees meet and decide nothing...

[A BUSINESS AFFAIRS EXEC FROM FURK'S LABEL]

"You trashed my label's whole website with this thing..."

Too bad! Where do you get off paying half royalties for digital rights? And check our contract...I never gave you digital rights to begin with....so you are just as bad as the pirates! If the 'cat's out of the bag' regarding digitized music, then all I did was give the artist a tool for fighting back and protecting their interests. If you got caught in the crossfire, it's because you were doing something sleazy to begin with. And that's right...I said 'artists'...I'm making my software available to any recording artist who wants it. We've got a 'Best Of' due out soon...am I supposed to sit back and have a lifetime's worth of work stolen from me by you or some kid with a PC? No way. You guys are even starting to collude with these bastards now...

[PANDEMONIUM - END OF TRANSCRIPT]

-30- .......................