As everyone told you, crypting and decrypting in the app is a huge
security breach since the password has to be in your app anyway.
Reverse engineering Android apps is very very easy for people who do
this kind of things. Also be aware that except if using https for your
file transfert, the download urls are also pretty easy to snif off the
network.

On another note if you just want to be secure against normal end users
and don't worry too much about the hardcore hackers then you're ok.
In this case I would recommend that you implement your own filestream
class with embedded crypting/decrypting.

If you're mp3's cannot get out at all and that's a requirement I
believe you have to follow Marcin advice to get the best DRM container
you can find. But  Mark is completely right : There's only two types
of DRMs, the one that were hacked and the one that are going to be
hacked :) So much so that a lot of non-free legal mp3 download
services now offer only DRM free mp3's

Yahel

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