The software giant has gained considerable ground over the past few months in its bid to have its audio technology loaded on every copy-protected CD sold by record labels. While labels have yet to make any significant copy-protected releases in the United States, Microsoft is poised to have its technology onboard if they do.

Macrovision said its new relationship with Microsoft could help diminish labels' reluctance to release copy-protected CDs in the United States, because it would allow consumers more flexibility to use music from those discs on computers and MP3 players.

"We're hopeful that the labels will do some test releases this summer and do some major releases this winter," said Adam Sexton, vice president of marketing for Macrovision's music technology division. "Copy protection is working in Europe, and airplanes are not falling out of the sky. The economy is still functioning, despite the doomsday predictions."

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