In December, the U.S. recording industry joined with major consumer-electronics companies to launch a consortium called the Secure Digital Music Initiative. SDMI wants to find a way to promote a standard that will allow digital music to be sold but not copied for commercial purposes. Downloaded music tracks will have data embedded into them showing their origin and copyright information. This won't stop copying, but it will help the recording industry identify the source of any file that is offered for sale or for free on the Internet without the copyright-owner's permission. And that's only the start.
Some companies feel a more secure approach is required.
Recently, Sony Music in the U.S. announced it would work with Microsoft to develop methods of selling music on-line more securely, and EMI said it would convert its library into a secure digital format pioneered by U.S. company Liquid Audio. However, the recording industry faces a number of more mundane operational problems, particularly in distribution and marketing. Music stores in Japan, for instance, have already expressed frustration that they might spend money to promote new music only to find customers downloading the tracks from a cheaper Web site. But these issues are perhaps even more important in the music industry, where copyright is so key. The U.S. Web store is happy to accept the money.