Patent ID: 7860809

Claim:
A method of distributing digital media, comprising: receiving at a first device a first copy of the digital media from a server, the first copy including: first media data that identifies the first copy as being associated with the first device; second media data that specifies that the first device has authorization to playback the first copy; and third media data that specifies that the first device has authorization to transfer at least one additional copy of the digital media made from the first copy, wherein a transfer includes providing by the first device transfer media data that identifies the additional copy uniquely relative to the first device; receiving at the first device a first request to transfer one of the at least one additional copies of the digital media to a second device; creating at the first device a second copy of the digital media in response to receiving the first request, the second copy including: the first media data; and the transfer media data; transferring by the first device the second copy to the second device; and sending from the first device a first transaction record to the server, the first transaction record including: the first media data; and the transfer media data.