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I understand that the idea I proposed is far from flawless. I do beleive watermarking would hinder piracy, in much the same way as a locked door keeps a person honest. If a person really wants in, of course he could get in and no amount of security will keep a persistant theif out.
I agree that the tracking system I imagined would be somewhat communitistic and hard to impossible to implement, but as a content creator I dread the idea of totally DRM-free files; whether they be books, music or movies.
Something that most people tend to forget is that they don't actually OWN any of the digital content they use unless they CREATED it. You only own a lisence to use the product as the owner(s) sees fit.
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