audiblemagic.jpgAudible Magic, the Los Gatos company that protects music and other content publishers from piracy by scanning files posted around the Web, is having problems.

NewTeeVee tested the so-called finger-printing technology across multiple sites, including Microsoft’s video site, and even enlisted that company’s help when it didn’t work. But time and again, despite posting a copyrighted file to Microsoft’s site, it wasn’t flagged, and the file was posted for free viewing.

This is notable because Audible Magic’s technology has been adopted by a wide range of players, including YouTube (at least, YouTube has announced it will use the technology; it isn’t clear whether it has started), Daily Motion, EyeSpot and Grouper. Having such technology in place is also used by video sites as a defense against copyright violation suits, which is relevant because Google was sued recently by Viacom for such violation.

Audible has several competitors, including Advestigo, Attributor, Auditude, Gracenote and Vobile.

Audible Magic, of Los Gatos raised $3 million in funding six years ago from Florida Silicon Partners and individuals, including Jeffrey Pfeffer, a Stanford professor. At the time, that was its third round of funding. Another investor is Tierra Del Oro, also of Florida, run by Addison Fischer, chairman of SmartDisk (Audible is listed as a portfolio company). The company declined comment when we tried to confirm details of the company’s financing two months ago.