"This is the beginning of trying to figure out how to commercialise digital downloading," said Wendy Goldberg, an AOL spokeswoman. Goldberg noted that AOL has previously taken steps toward selling music online, but wouldn't discuss details.

AOL plans to include the technology in its Winamp online music player later this year as part of a routine software upgrade. Using the add-on, AOL customers will be able to download music from participating record labels or retailers for a fee that hasn't yet been disclosed. But the technology won't let users illegally copy music.

InterTrust's software prevents music Web sites from running into the same legal headaches as Napster (www.napster.com), the popular music-sharing program that is facing stiff legal challenges from record companies. Napster allows users to illegally copy music free of charge by linking to other users' computers over the Internet.

A programme similar in many ways to Napster, called Gnutella (gnutella.wego.com), was created by a group of AOL engineers earlier this year. After complaints from Time Warner Inc, which AOL is in the process of buying, AOL yanked the program. Time Warner is a major manufacturer and marketer of recorded music. InterTrust, of Santa Clara, is one of many companies that is trying to come up with a practical way to stop piracy of music online. Last year, InterTrust won the support of the world's largest music company, Universal Music Group, a unit of Seagram Co, for its unique approach to online music.

Time Warner's music division said it has yet to select a technology for digital downloads, which it plans to begin offering later this year. But the entertainment giant isn't expected to pick InterTrust, according to a person familiar with the situation. Talal Shamoon, a senior vice president at InterTrust, confirmed that Time Warner isn't a partner. But with the AOL-Time Warner merger under way, "I assume they become partners," Shamoon said. AOL's agreement with InterTrust isn't exclusive, leaving it the option of licensing other, competing technologies later on.

-- (The Wall Street Journal)