Digital Goods To Shut Down

Revenue rises, reduction in workforce and continued losses

May 08 2001

Digital Goods announces a reduction of operations as it winds down business. The company, originally established in 1998 as Softlock Services Inc, was developed to assist businesses and web publishers in selling content on the web.

Prior to entering the online market and being renamed Digital Goods, Softlock Services held a patent to protect digital content on CD-ROMs. After the online boom, Digital Goods changed its business model to protect online content.

In recent times Digital Goods has tried to generate sales by entering into ventures with such companies as MightyWords, Texterity and Groove Networks. The primary arrangement of the agreements was for Digital Goods to provide interactive marketing services.

However, after recent revenue rises, a reduction in workforce and continued losses, the agreements have been to no avail. The company has been unable to generate enough significant sales to justify further investment.

Founder Jonathan Schull has taken the reigns from CEO Scott Griffith and in collaboration with advisory firm, Bramson and Pressman, will try and maximize the sale of intellectual property owned by the company. This includes issued and pending patents.

More Info