Last week some record labels started offering MP3s free of DRM (as reported by ArsTechnica, < ahref="http://www.msnbc.msn.com/id/16081654/" target="new">MSNBS (from the AP) and also engadget and others.

EMI is selling some music on Yahoo Music for 99 cents without DRM. The release is limited in scope and is being billed as an experiment to test the waters of demand.

But we believe that the record labels are beginning to admit that DRM is not stopping bootlegging and file sharing and is just locking their customers into specific hardware and software choices benefiting hardware manufacturers like Apple more than the record labels.