PeerApp Ltd. Awarded European Patent for Peer-to-Peer Content Distribution and Acceleration

NEWTON, MA -- (MARKET WIRE) – April 17, 2009 -- PeerApp, Ltd., a pioneer in carrier-class intelligent media caching and Internet video delivery for network operators, has been awarded a key patent from the European Patent Office (EPO) for  technology that enables peer-to-peer (P2P) content distribution and acceleration.

European Patent No. 01978794.4 is for a "Method and System for Accelerating Receipt of Data in a Client to Client Network." The invention outlines an advanced peer-to-peer acceleration solution that enables network operators to manage and accelerate P2P traffic. The solution uses P2P caching to automate the handling of millions of download/streaming sessions and terabytes of storage, as well as ensure transparency, manage DMCA Section 512b compliance, and meet other requirements of open peer-to-peer networks.

PeerApp CEO and Chairman Robert Mayer said: "This patent is the latest recognition of our technical leadership and innovation.  There’s a lot of debate and confusion about how to prevent P2P traffic from overwhelming broadband networks. PeerApp has the only viable solution that’s based on patented and proven caching technology and allows a network operator to satisfy user demand without incurring massive network upgrades.”

Network operators have a single solution for optimizing digital content delivery over broadband and wireless data networks. “Our P2P caching technology works side-by-side with our HTTP caching technology, enabling our solution to deliver everything from BitTorrent to YouTube to RapidShare. It even supports Microsoft software updates. Over the past three years, we have improved service quality for millions of broadband subscribers and have saved network operators millions of dollars,” Mayer said.

PeerApp Chief Technology Officer Alan Arolovitch added: “Our patented technology and architecture have enabled us to implement a single network caching element to support all varieties of media traffic and online services. Using our product, a network operator can instantly adapt to changes in traffic patterns and in the popularity of new applications and services without deploying multiple point solutions.”

For example, no one predicted the tremendous growth of the RapidShare file-sharing service. Because the UltraBand system caches (stores locally) statistically significant traffic across most P2P and HTTP services, it automatically knows what’s popular as it becomes popular. UltraBand customers are able to support RapidShare automatically and immediately – and manage RapidShare traffic alongside BitTorrent traffic without having to buy or build an additional caching system.

“As Internet video continues to flood broadband and wireless networks from multiple sources – including HTTP sites and P2P networks – our caching and content delivery solutions have become critical elements in the network to support demand,” concludes Arolovitch. “We’re turning the Video Internet challenge into a business opportunity for network operators.”

The legality of P2P and media caching is guaranteed in Europe under Article 5(1) of the Copyright Directive, which provides a mandatory exception to the reproduction right under copyright laws. The directive exempts temporary acts of reproduction (such as those used by PeerApp’s UltraBand system) where such processes “are transient or incidental [and] an integral and essential part of a technology process” to enable transmission between third parties.

More than 50 network operators from Africa, Asia, Europe, Latin America, the Middle East, and North America have purchased UltraBand systems. They have realized immediate benefits, including less network congestion (by eliminating repetitive downloads of popular video content) and more than 8X improvement in content delivery speeds.  Network operators also cite significant improvements in subscriber satisfaction, cost savings and network efficiencies.

About PeerApp, Ltd.

PeerApp (www.peerapp.com) is the technology innovator and leading provider of intelligent media caching solutions that help network operators worldwide – including a number in Latin America – manage multimedia content to improve network efficiency and enhance subscribers' Quality of Experience (QoE).

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