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The record label said that Apple is making changes to its leading portable music player so it will be able to play the DRM-encoded tracks from the CDs.

'Apple is nearly finished with the technical work necessary to enable consumers to transfer music from content-protected discs to their iPods,' EMI said in a statement. 'This is an important

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step for EMI and Apple, but even more so for music consumers who will soon be able to legitimately port music from protected discs they own to the iPod.'

But Apple said that neither iTunes nor iPods will be compatible with the Macrovision CDS 300 DRM software that EMI is using.

'The information EMI provided is not true and we have no idea why EMI made this statement,' Apple said in a statement of its own.

iPod-claims aside, EMI is keen to distance itself from the controversy surrounding Sony's protected CDs and insisted that its DRM would not install hidden files on PCs or download software without authorisation.

The DRM will enable users to rip the CD once to a computer in WMA format and transfer it to a player, make three full CD copies, or copy single tracks up to seven times. EMI and Macrovision have been asked to clarify whether the CDs will play or rip on Macs, we are awaiting their response.