Okay, so DRM is dead dead dead. Hurray, right? Well, Wired says it's simply being swapped out for digital watermarking, which will lay out breads crumbs for the labels to follow as songs make their way across P2P networks, and the bundle of evidence will allow them to place pressure on ISPs to engage in large-scale network filtering.

Right now, though, only two labels are watermarking tracks—Universal and Sony BMG. EMI and Warner aren't lacing their files yet, but it's a definite future possibility, and the watermarks could be used in conjunction with a filtering plan like AT&T's, which was recently confirmed by an AT&T exec. Ironically, Microsoft doesn't support network filtering, so we wonder how it would feel about its new, patented digital watermarking tech being used for the cause. [Wired, Digital Home Thoughts]

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