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Techcrunch has a very interesting article today that speaks about “new DRM,” the embedding of personal info into tracks purchased from major retailers such Apple and Wal-Mart.
Here is their post from an anonymous music industry ‘insider’:
Hidden in purchased music files from popular stores such as Apple and Walmart is information to identify the buyer and/or the transaction. You won’t find it disclosed in their published terms of use. It’s nowhere in their support documentation. There’s no mention in the digital receipt. Consumers are largely oblivious to this, but it could have future ramifications as the music industry takes another stab at locking down music files.
Here’s how it works. During the buying process a username and transaction ID are known by the online retailers. Before making the song available for download their software embeds into the file either an account name or a transaction number or both. Once downloaded, the file has squirreled away this personal information in a manner where you can’t easily see it, but if someone knows where to look they can. This information doesn’t affect the audio fidelity, but it does permanently attach to the file data which can be used to trace back to the original purchaser which could be used at a later date.
Retailers aren’t talking, but there’s ample proof of what’s transpiring. Using simple file comparison tools it’s possible to verify this behavior by purchasing identical songs using different accounts and see if they match. I emailed support departments for several retailers asking if they would acknowledge these actions and inquiring about what specific information they are embedding. Only 7digital responded saying they don’t use any watermarks. What retailers won’t say publicly is that the major record labels are requiring this behavior as a precondition to sell their music.
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SanDisk has announced the launch of the Sansa Clip+ MP3 player, which uses a microSD slot for added memory.
The player will work with SanDisk’s slotRadio and slotMusic cards, which are cards purchased from retailers with preloaded music on them. You can of course add your own music to a microSD card and play it back.
“We made a great product — the Sansa Clip — even better,” said Eric Bone, vice president, retail product marketing, SanDisk. “This small player packs big features, including a new microSD memory card slot that gives music lovers the ability to listen to thousands of additional songs in seconds. It’s the perfect player for travelers, busy moms, fitness buffs or anyone looking to enjoy music without the hassle of loading songs from their computer or updating playlists.”

The company also says the player is the first Windows 7 certified MP3 player.
The player should be available in multiple colorways, and available at Best Buy on August 31st. 2GB model will sell for $39.99, 4GB will sell for $49.99, and 8GB for $69.99 USD.
From the press release:
* Superior sound - one of the best sounding MP3 players on the market
* microSD expansion slot which is compatible with slotRadio and slotMusic cards and any standard microSD card
* A wearable clip for hands-free portability and effortless enjoyment of digital music on the go
* Large(1″), bright (OLED) screen with a simple user interface that makes it easy to choose playlists or songs sorted by title, artist, album, genre
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Kazaa, one of the most notorious P2P software of yesteryear is set to make a comeback in 2009, this time as a legal subscription music service.
Sources speaking to Cnet say the rebirth could happen as soon as August and will turn the once infamous unauthorized downloading hub into a new subscription service with catalogs from the Big 4 labels.
Unlimited downloads will cost $20 USD a month and the store is expected to open with over a million tracks available.
Napster, the original file sharing site to feel the wrath of the record label, reopened as a legal music store in 2003.