A new product called TraxCatcher is an MP3 player that creates mp3 files from FM radio. TraxCatcher embeds product serial numbers in the file, which could be used to track files that are shared, such as through P2P.

"The TraxCatcher is a MP3 player that sits on top of a FM radio Dock. From there, it will tune into your favorite FM radio station and record songs from the radio into "near perfectly cut" high-quality MP3 files.

"The first model to be announced is the TraxCatcher Classic, retailing for $159.99 USD and providing basic functionality. According to the company, future higher-end models would include HD radio support, digital inputs and outputs, USB connectivity, versatile MP3 docking capabilities, clock-radio functionality and satellite radio receiver integration.

"Those models are expected to range from $99.99 to $499.99 USD, Time Trax said."