"...Until now, a need for robust copy protection has held back the introduction of DVD-Audio, but the Secure Digital Music Initiative (SDMI) has finally put forth a solution. The SDMI brought together more than 180 companies to develop specifications that protect the playback, storage, and distribution of digital music and they have opted to recommend Verance Corporation's watermarking technology.
The DVD Forum has also decided to use Content Protection and Pre-Recorded Media (CPPM), an encryption technology, as an additional copy protection strategy for DVD-Audio. With CPPM, disc contents are encrypted and players are equipped with a decoder that enables them to read CPPM-encrypted media. The system defined by the specification relies on key management for interchangeable media, content encryption, and media-based renewability.
Although it has been decided that the Verance watermark and CPPM will be DVD-Audio's protectors, it appears that only WEA Advanced Media Operations and Panasonic Disc Services Corporation currently hold both licenses. Although some industry sources hint that there is a reason for the Warner/Panasonic jumpstart, sources at Verance and Warner Music insist that it is not so. Panasonic could not be reached for comment.."