Apple In Cahoots with Eight Japanese Firms to Deliver Music to Digital Audio Devices
rather than PCs to protect music from copyright infringement according to this EETimes article. Apple's iPod will be the first hard drive based device and the music will use Sony's copyright protection technology:
The platform is based on Sony's OpenMG X copyright management technology and ATRAC3 audio compression technology, which is used for MD disks.
[Dana Baggett]
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