Newsforge reports on a press release from Midbar Tech, a digital rights management company that has developed CD copy protection, most infamously Cactus Data Shield, which was thwarted by a felt tip pen (Midbar says felt-tip marker hack for copy-protect CDs "completely neutralized"). Read the press release (Midbar Announces 30 Million Global Milestone). According to Newsforge, Midbar claims that felt tip markers will no longer foil their copy protection. But I have to ask, what is the point? If, as the RIAA claims in a Reuters wirestory carried by C|Net News, those who download buy fewer CDs, CD copy protection targets those who aren't currently downloading music (Labels say music swaps spur sales slump). However, by making it more difficult to copy music into a portable format, the RIAA is actually pushing users to download their music because downloads are portable. This is classic self-defeating behavior. The RIAA needs some serious professional help.
In any case, CD Audio is an open format, whether the RIAA likes it or not. The fact remains that you cannot reliably protect the content of CDs if you can still play them in a CD player. Who wants to start a pool on how long it takes to break this new copy protection scheme?
UPDATE 0840 ET
WIRED has a short article on the music industry's fears (RIAA: Feeling Burn of Ripped CDs).
The Register reports on another CD copy protection scheme (Israeli firm unveils the 'copy-proof' CD). This technology is unrelated to Midgard's and is only for CD-Roms, not music CDs. It is still vulnerable to software hacking, despite the so-called "smart card" that is embedded in the CD.