Abstract: Various embodiments of the present invention are directed to methods and systems for distributing digitally encoded information. In one embodiment of the present invention, a licensee desiring to purchase digitally encoded information from a copyright owner posts collateral with a third party entity. The third party entity then provides authentication information to the licensee. The licensee transmits proof of knowledge of authentication information to the copyright owner. The copyright owner sends proof of the licensee's knowledge of authentication information and digital media to the third-party entity. The third-party entity embeds the authentication information in the digitally encoded information, and delivers the digitally encoded information with embedded authentication information to the licensee.