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Cracked or not? The SDMI saga continues.

http://www.salon.com/tech/feature/2000/10/19/sdmi_saga/index.html

Did hackers successfully break watermarks designed to protect digital music?

By Janelle Brown

Oct. 19, 2000 | On Oct. 3, Salon published a story outlining serious divisions within the Secure Digital Music Initiative (SDMI) as to whether the "watermarking" system that SDMI was testing as a way 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, senior V.P. of business and legal affairs for the Recording Industry Association of America (RIAA).

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