In order to check online music piracy, Fraunhofer Integrated Publication and Information Systems Institute has come out with digital watermarking technology that keep track of pirated audio files in peer-to-peer file-sharing networks. The new innovative technology is far better than DRM (digital rights management) systems that can be easily hacked.
The technology allows the music providers to digitally watermark downloadable MP3 files. The watermark does affect the quality but it's not visible to human senses.
Via: pcworld