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July 6, 2001 12:20 PM PDT

SightSound slashes staff

SightSound Technologies says it's cutting most of its employees, partly because the major record labels and most big motion picture companies have refused to license their material to the content distribution company.

"It is their unwillingness to partner with SightSound Technologies to utilize this new and useful way to distribute movies and music that has forced SightSound Technologies to where it is today," the company said in a statement. The Mount Lebanon, Pa.-based company said it would focus on secure digital distribution of movies and maintaining its portfolio of patents. It also said it would concentrate on its patent infringement suit against Bertelsmann's CDNow. SightSound has accused the company of violating its patent on selling music and movies online.

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