Thomson Invests in Content Guard

Thomson has announced a strategic investment in the digital rights management (DRM) tool Content Guard.

The 33 percent investment includes partnering with current investors Microsoft and Time Warner. After closing and regulatory approvals go through, Thomson will be able to select two directors to the ContentGuard board.

In April, Time Warner purchased most of the Xerox stake in its DRM technology. ContentGuard was created using technology from the Xerox Palo Alto Research Center (PARC).

"This unique partnership brings together content, technology and media services to deploy more rapidly DRM-enabled business models," said Frank Dangeard, Thomson chairman and CEO.

However, prior to the offer by Thomson, the European Commission sent letters of protest to Microsoft and TimeWarner regarding their purchases of the Bethesda, Md.-based DRM company with complaints that the deal could have a negative effect on competition.