Morpheus was looking like an ally in the fight to keep file trading alive. It didn’t include spyware in its software, and its new software tapped into the truly decentralized Gnutella world, where the record companies would be hardpressed to shut it down.

But its parent company now says it’s going to embrace digital rights management and include anti-copying technology in the software soon. Instead of allowing unrestricted file sharing, it will try to earn some money promoting “independent artists.” Sounds like a loser to me. Here’s the details.

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