It's been a while, but from what I remember Slyarov was arrested after giving his presentation. The charges were around the fact that he was disclosing how Adobe's DRM worked at the time (Slyarov) as well as for distributing circumvention tools (ElcomSoft). Adobe quickly dropped charges, but the case was prosecuted anyway. Although it was developed in Russia, the presentation was given here, and the software was made available for sale here.
Which package do you mean? I have no problem with content being watermarked. Apple does it for all of their audio, and that's no longer encrypted. It makes sense, and it's in line with the risks involved.
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