Unveiled at the 3GSM World Congress in Barcelona on Monday, PlayReady promises to be compatible with Windows Media DRM 10 and the PlaysForSure DRM format. Microsoft will also provide an interoperability program so content may be transferred to "qualifying DRM and content protection technologies" - which means it could be compatible with Microsoft's new Zune MP3 player.

PlayReady is expected to be released by mid-year. Leading mobile operators worldwide, including Telefónica, O2, Verizon Wireless, Bouygues Telecom, and Cingular Wireless, now the new AT&T, are today "indicating plans" to implement PlayReady technology, according to Microsoft.

The PlayReady announcement comes only months before the release of Apple's iPhone, which should also allow users to download music via mobile phone networks for playback on the device or a computer running iTunes. Amid a growing backlash to Apple's dominance of the music download market, Apple head Steve Jobs has recently challenged the music industry to abandon DRM efforts.{moscomment}

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