SDMI cracked! Maybe!
Music & MP3
10/12/2000; 3:19:31 PM

'Watch out -- recording industry executives are about to start running for cover. All of the Secure Digital Music Initiative's watermarks -- its much ballyhooed music protection scheme -- have been broken. A spokesperson for SDMI has denied the reports, but according to three off-the-record sources, the results of the Hack SDMI contest are in and not one single watermark resisted attack.'

Also see the Salon article Is the SDMI boycott backfiring? for some good background on why this might to important news.

For what it's worth, I don't believe watermarking will ever be possible. If it's detectable, it's removable.  There are just too many ways of decomposing sound and recomposing it for watermarking to work.