Given the vastness of cyberspace and the daily increase in the number of sites that use sound and video, it has become apparent to the music industry that securing legal protection for sound recordings is only one small step towards protecting music on the Internet . Enforcing those rights is a different matter entirely, especially when dealing with music which is little more than computer data stored on a computer disk.

In June 1997, the International Federation of the Phonographic Industry (IFPI ) issued a Request for Proposals for an "Embedded Signalling System" which would be used to manage and track the use of digital music in the European music market . If successful, this watermarking technology would later be introduced into the US entertainment market, because, according to Paul Jessop (director of Technology at IFPI)

"It will be a decidedly crucial factor towards the entertainment industry's willingness to advance DVD Video beyond its current existence as a technophiles" medium, to introduce DVD Audio to all, and to support the Internet as a retail outlet for CD -quality music" [40].

This project became known as the MUSE project, and eight to twelve digital audio technology companies answered IFPI 's request for proposals before the deadline at the end of June, all of whom have so far remained anonymous. Companies who are currently developing watermarking software include the US-based companies a2b music - a subsidiary of AT&T Laboratories, Liquid Audio and Intersect, Europe-based AudioSoft, and London-based Cerberus.

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