Lauren Weinstein sends in news of a major and disturbing Microsoft anti-piracy initiative called Windows Activation Technologies, or WAT. Here is Microsoft's blog post giving their perspective on what WAT is for. From Lauren's blog: "The release of Windows 7 'Update for Microsoft Windows (KB71033)' will change the current activation and anti-piracy behavior of Windows 7 by triggering automatic 'phone home' operations over the Internet to Microsoft servers, typically for now at intervals of around 90 days. ... These automatic queries will repeatedly — apparently for as long as Windows is installed — validate your Windows 7 system against Microsoft's latest database of pirated system signatures (currently including more than 70 activation exploits known to Microsoft). If your system matches — again even if up to that time (which could be months or even years since you obtained the system) it had been declared to be genuine — then your system will be 'downgraded' to 'non-genuine' status until you take steps to obtain what Microsoft considers to be an authentic, validated, Windows 7 license. ... KB971033... is scheduled to deploy to the manual downloading 'Genuine Microsoft Software' site on February 16, and start pushing out automatically through the Windows Update environment on February 23. ... [F]or Microsoft to assert that they have the right to treat ordinary PC-using consumers in this manner — declaring their systems to be non-genuine and downgrading them at any time — is rather staggering." Update: 02/12 02:08 GMT by KD : Corrected the Microsoft Knowledge Base number to include a leading 9 that had been omitted in the pre-announcement, per L. Weinstein.

BioShock 2 launched today for the PS3, Xbox 360 and Windows, ending the wait for a sequel to the original 2007 blockbuster. The events in BioShock 2 take place 10 years after the story from the original game. This time around, players control a prototype Big Daddy in an attempt to overthrow the new leader of Rapture. Early reviews for the game are quite strong, though the developers were prepared for fan backlash over some of the changes they made. The Guardian's Nicky Woolf praises the new storyline, and adds that "there is a fundamentally excellent shooter here too, with some of the best combat dynamics in the business." Rock, Paper, Shotgun's Alec Meer also had good things to say about the combat: "I can't stress this enough – as a game about shooting people, it's very responsive and very rewarding." However, Meer expressed disappointment that some of the impressive new concept art didn't get used and that the story and environment couldn't match the novelty of the original game. "Part of Rapture's great wonder was that it was just believable enough, if you squinted your brain a bit (or a lot), but this lathers on so much wild sci-fi that it's much harder to connect to it. The Sisters are elevated from horrifying genetic/psychological experiment into all-powerful messiah figures capable of pulling any old deus ex machina out of the hat. Making them into so much reduces the power and the sadness of what they are. As a result, the concept feels too exhausted to ever be used again."

itwbennett writes "Giving no explanation beyond that it 'will provide the greatest benefit to the Xbox LIVE community,' Microsoft's General Manager for Xbox Live, Mark Whitten, announced that as of April 15th, Microsoft will be shutting down its Xbox Live service for the original Xbox and its games. 'Cold comfort for those of you who still enjoy playing Xbox titles like Halo 2 with your friends,' writes blogger Peter Smith. But Smith notes that Whitten's announcement does hint at some form of restitution for those affected, encouraging users to check their LIVE messages for more details and opportunities."

An anonymous reader points out an article at SavyGamer in which several game industry veterans were polled for their opinions on DRM. Cliff Harris of Positech Games said he didn't think his decision to stop using DRM significantly affected piracy of his games, accepting it as an unavoidable fact. "Maybe a few of the more honest people now buy the game rather than pirate it, but this sort of thing is impossible to measure. You can see how many people are cracking and uploading your game, but tracking downloads is harder. It seems any game, even if it's $0.99 has a five hour demo and is DRM-free and done by a nobel-peace prize winning game design legend, will be cracked and distributed on day one by some self righteous teenager anyway. People who crack and upload games don't give a damn what you've done to placate gamers, they crack it anyway." Nihal de Silva of Direct2Drive UK said his company hasn't noticed any sales patterns indicating customers are avoiding games with DRM. Richard Wilson of TIGA feels that customers should be adequately warned before buying a game that uses DRM, but makes no bones about the opinion that the resale of used games is not something publishers should worry about.

Mass Effect debuted a little over two years ago to almost universal praise, getting high marks for the rich story, endless exploration options, and entertaining gameplay. Despite the game's success, BioWare listened closely to player feedback, promising to revamp the parts of the game that needed improvement while developing the sequel. They didn't hesitate to refine the elements they wanted to keep and do away with the ones they didn't. The result is a familiar, but much more streamlined experience. Rather than being a shooter with a great story added in, Mass Effect 2 a great story that often has you shoot things. Read on for the rest of my thoughts.

jgreco writes "The music industry once feared that going DRM-free would drive a massive explosion of copyright-infringing music availability on P2P networks. Now, a new study seems to suggest otherwise. The answer is obvious: if you can easily get inexpensive DRM-free content that works on your devices through legitimate channels, most people won't bother with the headache of P2P networks. It appears that users largely turn to P2P to acquire DRM-free versions of content that is distributed with DRM. The MPAA, of course, will not come away from this with the obvious conclusion."

As of last night, Amazon stopped listing all books from Macmillan Publishers, referring searches to other sellers instead. According to the New York Times, this is because Macmillan is one of the companies that now has an agreement to sell ebooks through Apple's new iBooks store, and asked Amazon to raise the price of their ebooks from $9.99 to $15. An industry source told the Times that the de-listing is Amazon's way of "expressing its strong disagreement" with the idea of a price hike. Gizmodo suggests this is the first volley in an Apple-Amazon ebook war. Quoting: "It feels like a repeat of the same s*** Universal Music, and later, NBC Universal pulled with iTunes, trying to counter the leverage Apple had because of iTunes' insane marketshare. Same situation here, really: Content provider wants more money/control over their content, fights with the overwhelmingly dominant, embedded service that's selling the content. Last time, everybody compromised and walked away mostly happy: Universal and NBC got more flexible pricing, iTunes got DRM-free music and more TV shows for its catalog to sell. ... The difference in this fight is that Macmillan is one of the publishers signed to deliver books for Apple's iBooks store. They have somewhere to run. And credibly. That wasn't really the case with record labels, who tried to fuel alternatives to dilute iTunes power, and failed."

An anonymous reader writes "FSF's John Sullivan launches the Defective by Design campaign and petition to rain on Steve's parade, barely minutes out of the starting gate. 'This is a huge step backward in the history of computing,' said FSF's Holmes Wilson, 'If the first personal computers required permission from the manufacturer for each new program or new feature, the history of computing would be as dismally totalitarian as the milieu in Apple's famous Super Bowl ad.' The iPad has DRM writ large: you can only install what Apple says you may, and 'computing' goes consumer mainstream — no more twiddling, just sit back, spend your money, and watch the show — while we allow you to." What is clear is that the rise of the App Store removes control of the computer from the user. It makes me wonder what the next generation of OS X will look like.

An anonymous reader writes to tell us that Bach Technology has rolled out an updated MP3 file format in a bid to combat music piracy. Dubbed "MusicDNA," the new format offers embedded "updatable premium content" like lyrics, videos, news updates, and album artwork. "Using the new technology, music labels and bands will be able to send updates to the music files – with tour dates, interviews or updates to social networking pages – while illegally-downloaded files remain static. ... No major labels have signed up to use MusicDNA so far, but British record company Beggars Group and US label Tommy Boy are both on board. However, the files are likely to be more expensive than MP3 files – according to the BBC – and will have to compete with Apple's iTunes LP, which already provides additional content such as bonus tracks, lyrics and video interviews."

gbjbaanb writes "The BBC has been granted provisional approval to introduce copy protection for Freeview HD after they resubmitted an amended plan. Quoting from Ofcom's statement: 'In view of the fuller submission provided by the BBC, Ofcom is currently minded to approve its request for a multiplex license amendment subject to consultation responses, on the basis that in principle, content management is a justified objective which ensures that the broadest range of HD content is made available to citizens and consumers.' However, it's not too late yet — you can submit your comment and tell them you'd like to be able to record broadcast HD TV. I'm sure the 'content providers' will continue to sell content to the BBC, ITV, etc., if this is not implemented. They'll still take our license fee money (or advertising) and sell us the content, but refuse to let us record or copy it, hoping we'll go out and buy the DVD/Blu-ray as well."

poopdeville writes "Starting Friday, Google and YouTube will allow movie rentals. The first five films available to rent through YouTube will cost $3.99 for a 48-hour viewing period. Movie studios will be able to set their own prices, with rental viewing windows ranging from one to 90 days. YouTube will get an unspecified commission from each rental. Barclays Capital analyst Douglas Anmuch expects YouTube to generate about $700 million in revenue this year, an estimated 55 percent increase from 2009. If YouTube hits that target, it likely will turn profitable, helping to justify the $1.76 billion in stock that Google paid for the site more than three years ago."

An anonymous reader writes "With HDMI becoming increasingly common, Displayport has been slow to emerge as a widely used connection interface, but a plethora of new features in the new v1.2 standard could see that change. As well as doubling the data rate of the existing v1.1a standard to 21.6 Gbps, the update allows for multiple monitors to be connected to a single Displayport connector and adds support for transporting USB data at up to 720Mbps, enabling embedded webcams, speakers and USB hubs over a single cable. Ethernet data is also supported. The improved data rate will allow for richer, larger and higher resolution displays, and the new version is also backward compatible with the current display technology, so all the ports, cables and devices will be interchangeable, although they will revert to the lowest common denominator."

Andy Updegrove writes "Think of the words 'standards war,' and if you're of a certain age you're likely to think of the battle between the Betamax and VHS video tape formats. Fast forward, and you'll recall we just finished another video standards war between most of the same companies, this time between HD DVD and Blu-ray. Well, here we go again, except this time its the movie studios that are duking it out, and DRM issues are a big part of it. On the one side are five of the six major studios, dozens of cable, hardware, software, distribution and device vendors, and on the other side there's just Disney — and maybe Apple as well, and that's enough to have the other side worried."

An anonymous reader writes "I purchased Rebel EFI in support of Psystar's crusade back in October. Just 3 short months later, I have no support. I found this out when I upgraded my hard drive and installed Snow Leopard using Rebel EFI. The program can no longer 'phone home' to activate or download/install drivers. This is a direct contradiction to Psystar's promise posted on their website: 'Psystar will continue to support all of its existing customers of hardware and software through this transitional period. Warranties on hardware will continue to be honored as long the customer has a valid warranty. Rebel EFI support for existing customers, as always, will remain exclusively available through email and the built-in ticket interface.' Has anyone else run into this issue? It has been 9 days with no response from Psystar by e-mail or phone."

Anonymous Crobar writes "Microsoft has received a patent for a 'digital rights management scheme for an on-demand distributed streaming system,' or using a P2P network to distribute commercial media content. The patent, #7,639,805, covers a method of individually encrypting each packet with a separate key and allowing users to decrypt differing levels of quality depending on the license that has been purchased."

An anonymous reader writes "Studios digitally restricting (drm) or locking down content with DVD-CSS not enough for you? Well, get ready, here comes the entertainment cartel's Holy Grail, all-hardware encryption, via 'DECE.' And let's not forget this little issue."

Hugh Pickens writes "EFF reports that Cory Doctorow spoke to a crowd of about a hundred librarians, educators, publishers, authors, and students at the National Reading Summit on How to Destroy the Book and said that 'anyone who claims that readers can’t and won’t and shouldn’t own their books are bent on the destruction of the book, the destruction of publishing, and the destruction of authorship itself.' Doctorow says that for centuries, copyright has acknowledged that sacred connection between readers and their books and that when you own a book 'it’s yours to give away, yours to keep, yours to license or to borrow, to inherit or to be included in your safe for your children' and that 'the most important part of the experience of a book is knowing that it can be owned.'"

ctmurray writes "Amazon reports for the first time ever they sold more ebooks on one day than real books. My wife is an ebook-only author and reported her largest single day sales on Christmas day, and December has been her best month ever as well. All those Kindles bought for this season are being seen in ebook sales." The battle with publishers over pricing seems to be coming to the fore as well.

bluec writes "Generally speaking, the BBC isn't allowed to encrypt or restrict its broadcasts: the license fee payer pays for these broadcasts. But the BBC has tried to get around this, asking Ofcom for permission to encrypt the 'metadata' on its broadcasts – including the assistive information used by deaf and blind people and the 'tables' used by receivers to play back the video. As Ofcom gears up to a second consultation on the issue, there's one important question that the BBC must answer if the implications of this move are to be fully explored, namely: How can free/open source software co-exist with a plan to put DRM on broadcasts?"

An anonymous reader writes "The Register reports that the proprietary document format used by the Amazon online store and Amazon's Kindle has been successfully reverse engineered, allowing these DRM-protected documents to be converted into the open MOBI format. Users of alternative e-book readers rejoice." Here are the hacker's notes on the program he is calling "Unswindle," and here is the (translated) forum where the Kindle challenge was posed and answered.