Apple's new iPod Shuffle has added a new layer of hardware DRM, possibly preventing third-party companies from reverse-engineering the Shuffle technology in order to build headphones. Electronic Frontier and iLounge have discovered an Apple authentication chip DRM (Digital Right Management) requirement that will mean third-party headphone makers will have to pay fees for the authentication chip and design headphones with the chip included. The authentication chip provides a legal means to prevent headphone makers from reverse-engineering the Shuffle output to create a set of headphones that work with the new iPod. Apple could sue any companies that attempted such an effort for DCMA violations.
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