![]() In 2001, sheet music development has transitioned to a variable component and outside contractors are being utilized on an as-needed basis. We will also continue adding to the existing SmartMusic accompaniment and sheet music catalogs, creating additional digital sheet music and accompaniments. In general, the Company plans to continue developing the SmartMusic Subscription model for distribution on its Internet and other Internet web sites. Further, users of the Companys latest notation software (see below) can create their own accompaniments which can be played by SmartMusic subscribers. Further, we plan to expand our library of accompaniments to cover a broad spectrum of music genres, instruments and skill levels as well as international preferences for music performance. The Company intends to use its relationships with key publishers and other sources to select the most popular titles for development as accompaniments for SmartMusic Studio products. These accompaniments vary in complexity from easy to challenging and cover a broad range of musical genres for almost all band instruments and voices. The Company made its accompaniment selection based on a review of the most frequently performed titles in American academic solo contests as well as popular titles of sheet music sold at retail in the United States. The Company has created over 5,000 individual classical and jazz accompaniments contained on approximately 500 computer floppy disks or one CD-ROM for its SmartMusic Intelligent Accompaniment product as well as accompaniments for the Belwin 21st Century Elementary Band Methods I, II and III. The Company has also received the exclusive rights from certain major publishers to all solo classical works for voice, wind, brass, percussion, string and keyboard for the purpose of musical accompaniment products, which respond in real time to the musician. These license agreements allow us to produce synthesized versions of musical arrangements for use with the SmartMusic Studio system. The Company has entered into license agreements with top music publishers.
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