This is probably not a non-issue (Score 1)

According to the actual SDMI specification[1], "SDMI compliant" does mean more than restrictions on file transfers. For example, any integrated microphone input in an SDMI-compliant device must "be restricted to mono voice-grade and band-limited."[2] Also, "unprotected digital playback (e.g., via USB speakers) shall be limited to linear PCM at 48 kHz 16 bit or below..."[3] Basically, in order to maintain content control, the SDMI spec requires that devices artificially limit the sound quality of both input and output.

The specification also states that "any Content stored on the PD [portable device] shall be SDMI Protected Content."[4] I interpret this to mean that if unprotected content (i.e. mp3 files) are uploaded to an SDMI-compliant device, that device is required to place SDMI restrictions on that content before it is stored.

-k

[1] http://www.sdmi.org/download/port_device_spec_part 1.pdf

[2] "SDMI Portable Device Specification, Part 1", version 1, p14.

[3] ibid., p31.

[4] ibid., p14.