TrackTrace is a product for embedding watermarks in existing MP3 audio files. The format is not changed by the watermark, consequently the MP3 audio file still conforms with standards. After watermarking, the file can be played on any MP3 player and is accepted by any MP3 player software that also accepts the original MP3 file.
Distributors that operate on the Internet can use TrackTrace to embed transaction data in the music titles or audio books sold on this platform. This can either be a sequential transaction number or a customer number assigned to the purchaser. Using this information, it is possible to determine at a later time which customer placed a purchased copy of a title on music-swap sites, thereby violating certain usage rights.