Watermarking or other tagging process which makes pirated books easily identified is the way to go I believe. I don't believe pirates is the real target anyway. I think average readers who would share their books with friends and family are the real target. They know true pirates are beyond their ability to stop.
Hachette is telling their authors that if they also publish the same titles with TOR, they're not allowed to sell those titles without DRM.
Methinks this will lead to more piracy, not less. Hopefully Hachette will realize the error of their ways, but for the time being I think they've surpassed Penguin as the pub making the biggest mistakes in the ebook business.
Here's a link to the Cory Doctorow article on PW that the above article references:
**This article is also a fantastic primer on why DRM is bad for, well, everyone except the ebook vendors.
Well, I have a few thoughts after reading the articles.
1) Is Hachette UK trying to run itself out of business? I mean, if you are demanding that the author require a publisher in another market do something that is anathema to it's business model, aren't the authors just as likely to say 'screw you' to Hachette and go with another publisher when their contract runs out?
2) I'm wondering if there aren't laws in place that would make it illegal to interfere with the business operations of a competitor? Even if they aren't in the exact same market, but corrollary markets?
3) DRM doesn't stop piracy. As one of the comments said, it's a speedbump. Heck, it isn't even that. It's the gnat that hits the windshield (on the passenger side, none the less). For pirates, it's a minor annoyance. For readers who switch platforms, it can hellacious if they aren't tech savvy.