Israeli software security and smart card company Aladdin Knowledge Systems Ltd has got together with Rights Exchange Inc – an internet transaction clearing house firm owned by Softbank Corp – to jointly develop an electronic software distribution service called Privilege ESD that the pair will market jointly. Based on Aladdin’s proprietary Privilege network license management toolkit, the letter of intent between the two calls for Aladdin to license Rights Exchange’s clearing technologies and service, while REI will license Aladdin’s ESD and security products in return. The ESD product will be developed by Aladdin, comprises a front-end and the license enforcement and management system, built on top of REI’s back office engine, which is itself based entirely on technology from InterTrust Technologies Corp. Aladdin gets exclusive use of the technology for ESD purposes. Buffalo, New York-based REI used to be known as Softbank Net Solutions and was established two years ago as the internet division of Softbank Services Group. The name was changed a couple of months ago to align it more closely with its now- eponymous digital commerce services. The two companies will share royalties from transactions executed using the Privilege ESD system.
