Watermarking red-book cd's

There is a small article in this months (Nov.) Acoustic Guitar that claims BMG is begining to release some discs with an anti-piracy encryption. Don't have the mag here in front of me but I was very,very, surprised by this.

If...the watermarking is audible, would an artist have grounds for a lawsuit against the label. The basis for the suit being that the label has "added" content that is not the artist's intent.

Would a consumer be able to file a lawsuit against a label on the same basis?

Thanks Doug

My suggestion to those who have unknowingly purchased a watermakred disc and think the sound has been impaired, is to return the CD to the place of purchase and demand a full refund. Follow-up with angry letters to the retail owners (if a chain), the record manufacturer, the recording artist and your Congressional representative. Be pro-active.

BTW, the watermark system is easily defeatible by computer users. The goal of watermarking is to have a disc that plays perfectly on a normal CD player, but produces errors on CD-ROM drives. If someone has a CD player with a digital ouput and a computer with a soundcard with a digital input, then the watermarking will be by-passed.