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To: Savant who wrote (7122)	8/9/1999 12:28:00 PM
From: JimC1997	Read Replies (1) \| Respond to of 18366

Savant, Actually I think that makes sense. The Phase I standards should provide a detection routine which will look for watermarks in downloaded files. If the file is watermarked it probably will not play until the device is upgraded. Once upgraded, the device could then play the new music. Otherwise, no music could be sold until the source material has been watermarked, which might take a long while to implement. The only leverage that the record labels have over consumers is the consumers desire to hear new music. By forcing them to take some action on their players in order to hear new music they remove the problem of trying to convince consumers to do something for the exclusive benefit of the record labels. So Phase I really just requires that the watermark detection system be agreed upon and that the players have some form of automatic (owner-activated) upgrade to their control software. By selecting the watermarking system they can agree on the "signature" for the players to be searching for in each music file. Jim