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Can rip-proof CDs save the music biz?

posted onSeptember 11, 2003
by hitbsecnews

Since 1999, CD unit sales have plunged 26 percent -- a decline of $2 billion -- thanks in part to file-sharing services and other forms of digital piracy. The record labels' frustration is so acute that the Recording Industry Association of America has begun suing hundreds of consumers who have exchanged music on peer-to-peer networks like Kazaa, Morpheus, and Gnutella.

But what technology giveth, can it taketh away?

The industry hopes so: This month the first copy-protected CDs are expected to start showing up on music-store shelves in the United States. And that's great news for the one or more lucky companies whose music-locking tech will be adopted. Even by modest estimates, licensing fees will amount to more than $100 million annually.

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