tmalone writes "The New York Times is reporting that book publishers are beginning to phase out DRM-protected audio books. This month the world's largest publisher, Random House, started offering DRM-free mp3s; Penguin has announced that it will follow suit. Their logic? DRM just doesn't work. 'Publishers, like the music labels and movie studios, stuck to DRM out of fear that pirated copies would diminish revenue. Random House tested the justification for this fear when it introduced the DRM-less concept with eMusic last fall. It encoded those audio books with a digital watermark and monitored online file sharing networks, only to find that pirated copies of its audio books had been made from physical CDs or DRM-encoded digital downloads whose anticopying protections were overridden.'"