John Graham asked,

| I've read sometime that the SCMS bit can be set to 'COPY UNLIMITED', could
| it be that the SBLive! is setting this condition?

It could.  Computer peripherals are not covered by SCMS (likewise the
immunity from suit for non-commercial copying under the AHRA does not extend
to copying through computer peripherals).

| I had understood that making a recording from a digital source would
| *always* set the SCMS copy status, thereafter allowing only one digital
| copy.  This seems to break that rule.

That wasn't the rule.  Yes, recording will always set the SCMS bits, but it
won't necessarily set them to limit the generations.  A digital transfer to
an SCMS-compliant device of SCMS-unlimited material should produce an SCMS-
unlimited copy.  There will still be generational loss from ATRAC, but that's
all.

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