Researchers from Xerox PARC, Princeton University and Rice University say they have cracked all five of the watermark technologies presented by the music industry-sponsored Secure Digital Music Initiative (SDMI). The head of SDMI, however, has released a statement saying that three of the technologies have survived all attacks. He issued the challenge, with a $60,000 prize, that prompted hackers to test various file "fingerprinting" technologies deemed necessary for enforcing online copyrights.

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