SDMI is a generational copy control system - it is the technical implementation of the AHRA, which assures consumers the right to make copies of first generation content (ha!). The Central will not burn back to CD any content which is a copy of a copy. It also reflects the SDMI codes on its optical output.

SDMI doesn't really apply to any other SB products right now. For different legal reasons the portables are implemented as "end points" so they can accept content but not copy it back out again. For some reason only understood by lawyers the car player is the exception to this, but we'll just keep quiet about that right?

WMA DRM is an encryption system to prevent playback of content without an appropriate key. This allows content providers to sell direct to the consumer without worrying that it will get shared. I think this market (online content sale) will become very significant over the next 12 months (watch this space).

There is no adverse implication for unprotected content (MP3 or WMA) - the DRM layer is only activated for DRM content.

The above is my interpretation of these issues and not necessarily the view of SB. i.e. don't quote this in court, I don't know what I'm talking about!

Rob