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protects digital files from copyright infringement has been breached, according to reports.
A program called Fairuse4wm has been posted on the net and is apparently capable of breaching Microsoft's Digital Rights Management (DRM) system.
It could spell problems for internet music shops, potentially enabling users to download unlimited files.
However, an analyst said Microsoft was probably working to "close the hole".
DRM is used to control people's access to digital data.
It is commonly employed on music downloading sites to restrict the use of music purchased and downloaded online to ensure copyright is not infringed.