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IBM carries a tune
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January 22, 2001: 7:30 a.m. ET
Big Blue set to release Napster-like music sharing program, but on label's terms
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NEW YORK (CNNfn) - Taking its cue from the Napster controversy, IBM plans to introduce a new form of digital music distribution Monday that will allow record labels to collect payment for each track swapped in an online music-sharing network, according to published reports.
IBM's new Electronic Media Management System gives Big Blue entry into the immensely popular and evolving online music swapping business first put onto the map by Napster.
 Consumers will still be able to share music files, but on terms set by the record label, the San Jose Mercury News reported in its online edition Monday.
Record labels might use the service to promote a new album by making one or two tracks available for free downloads, but for a limited time. Or, partial teaser tracks might be offered, requiring the listener to follow a link to a secure site to buy the song, industry analysts said.
IBM's music distribution technology, called superdistribution, is designed to work with digital rights management technology Big Blue helped develop for portable devices, the Mercury News reported. Future MP3 music players will come equipped with built-in copyright protection called Content Protection for Recordable Media, which prevents music from being copied without permission.
Shares of IBM (IBM: Research, Estimates) jumped $2.94 to $111.25 Friday. 
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