"Salon published a story outlining serious divisions within the
Secure Digital Music Initiative (SDMI) as to whether the
"watermarking" system devised by SDMI to protect digitally
distributed music would actually work. Then, on Oct. 12, Salon
reported that hackers who had been invited by SDMI to test the
security system had successfully broken all the watermarks."
"Salon based its reporting on three sources who spoke only on
the condition that they not be identified. It also quoted an SDMI
spokesperson denying that the watermarks had been successfully
"cracked." But on Oct. 13, SDMI director Leonardo Chiariglione
declared in an Inside.com story that Salon's story was "completely
wrong, unfounded, anonymous slander."
"We returned to one of our original sources, seeking a response
to Chiariglione's rebuttal. Our source replied, giving us even
greater detail about what is happening behind SDMI's closed doors.
We have decided to publish our insider's response, verbatim,
along with additional responses from both Chiariglione and Matt
Oppenheim, a spokesman for SDMI who also serves as VP of legal and
business affairs for the Recording Industry Association of America
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