What Chaosu is saying is that such watermarking would not remain intact, iow that the boys at Activated Content are lying their asses off.

Nope man, he's right. What do you think how these bits will transport, telepathy???

If the arses of Universal and wtf tell you this system is unfailable, why do you think they do?

You have to understand when somebody is manipulating you, dude.

It might even be enoug to alter small things in the bit structure of the song, like speeding it up 0.1%, so you change the entire table of bits but keep the song intact enough to not loose listening pleasure.

Let me dudes tell you one very important thing: The war of copiers against distributers was over since the invention of mp3, the arrival of fast web-connection and the first version of napster and it will never be changed, only (-if, at all-) mader harder for copiers, spreaders aso.
As long as you can hear a signal, you will always have some sort of possibility to hijack it, wheter it's coded or whatnot, the rest is just trying to disguise / loose / disable the 'spyware' in it.

So, the album WILL leak, if it's gonna be done by a smart person or an idiot than can be traced - we'll see.

Instead of degrading quality too much, why not add fake watermarks?

any true fan would wait.