WEB PIONEERS: Former Oxford University students James, left, and Joseph Matthews have set up the Assertion Group at Begbroke Science ParkPicture: Damian Halliwell BROTHERS James and Joseph Matthews believe they have the winning formula that will end Web piracy.

Record, software, film and media companies lose 13bn a year because people "pirate" music, pictures, software and video files from the Internet without paying royalties.

The former Oxford University students, who are joint chief executives, have set up the Assertion Group at Begbroke Innovation Centre, Oxford University's new science park a few miles north of the city.

Joseph was doing research into computer chip design for Oxford University and his work has generated a steady consultancy income for the company, with 10,000 contracts secured in the last few months.

One contract is to supply multimedia support to soft drinks company Pepsi and another is to provide media solutions for the Microsoft Windows 2000 launch website.

Now they have launched a new digital media services company, Netsertion, to offer digital media protection services, shielding Internet content providers from Web-based piracy.

James Matthews said: "Assertion Group is used to challenging projects and Netsertion looks like it will be our biggest yet. The really exciting opportunity is the chance to become a world-leading company in a new field."

Marketing manager Barney Jones said: "Staff numbers are doubling on average every two months. In a couple of months we hope to be employing 30 to 40 staff.

"We have business angel backing and have been offered 10m to develop Netsertion."