MS says it can stop MP3 trading with watermarks

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Author: JT Smith

Wired: “Microsoft has developed a prototype system that limits unauthorized playback of music by embedding a
watermark that remains permanently attached to audio files.

During a security workshop on Friday, a Microsoft Research scientist demonstrated how the hidden copyright fingerprint is so
securely affixed to the audio that it remains intact even if a jazz song is played aloud on speakers in a noisy room and then
re-recorded.”