Fidelio Gets Into Digital RightsFidelio Gets Into Digital Rights

InterTrust, which has seen its digital-rights management technology evolve from an entertainment application into wider use as a tool for protecting intellectual property, last week agreed to be acquired for $453 million in cash by Fidelio Acquisition. Fidelio is an investment company formed by Royal Philips Electronics, Sony, and other undisclosed investors.

Founded in 1990, InterTrust has been one of the beacons of digital-rights management, but as an independent vendor its reach has been limited. Sony and Philips are looking to make the company's patent-protected digital-rights management technologies more widely accessible in an effort to jump-start the market for digitally distributed entertainment content. But Talal Shamoon, executive VP of InterTrust, says the vendor's technology will be key for businesses adapting to the digital economy.

The acquisition, which is subject to regulatory and shareholder approval, is expected to close early next year.