LONDON — IPTV content protection and security solutions specialist Verimatrix has upgraded its digital watermarking technology so that the encryption system can track video piracy directly to its source.

The company says the option to its Content Authority System (VCAS) would be the first user-specific digital watermarking system that can embed an electronic fingerprint in video content as it is played back at the set-top box.

Verimatrix (San Diego, Calif.) will be demonstrating the latest technology at the International Broadcasting Convention being held in Amsterdam next week, where it will also announce its expansion into Europe, with a sales and support organization near London.

The company says the expansion is partly as a result of its increasingly fruitful OEM relationship with Siemens AG and other European partners.

Verimatrix protects content and video streams, as well as detects digital piracy at its point of origin, with technology designed specifically for bi-directional IPTV networks. The company developed VCAS as a software-based content security solution built on the principles of Public Key Infrastructure (PKI) and X509 digital certificates combined with digital watermarks.

VCAS inserts three different types of watermarks so that the complete history of a media file can be determined: within the primary data center, at each edge site (or point-of-presence), and a third watermark, called a user-specific watermark, on each client device. "The IPTV market has gained so much momentum that content providers are now requiring operators to employ proven security measures before granting rights to premium content. The addition of user-specific watermarking to pinpoint individuals attempting to steal content has gotten the attention of IPTV operators and studios," said Tom Munro, CEO of Verimatrix.