Method
The strategy for the SDMI group involved two stages. Firstly to implement a secure digital watermarking scheme. This would allow music to be tagged with a secure watermark that was hard to remove from the source audio without damaging it. The second stage was to ensure that SDMI compliant players (see the SDMI Portable Device Specification) would not play SDMI tagged music that was not authorized for that device. The reasoning was that even if the files were distributed they could not be played as the device would detect the music was not authorized to be played on it.
Read more about this topic: Secure Digital Music Initiative
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