Now this sounds like a logical idea when it comes to a DRM alternative. Microsoft has developed a 'digital watermark' for audio files that would identify the content craters and the original purchaser. Although this wouldn't stop the "sharing" of music, it would prove who originally owned the track.
"That means illegally traded songs could be tracked back to the original purchaser, allowing authorities to identify illegal sharers and serving as a deterrent."
This solution would allow users to take music that they purchased and transfer it to other devices that they own. This is a much better idea than DRM, and should be looked at as a better way of doing business.
Microsoft patents watermark technology that may lock down DRM-free music [InfoWorld via Crunchgear]
