Abstract: A system and method are described for sharing, playing, storing, and managing audio files. Audio files can be stored in the cloud and shared among a limited group of users, wherein an uploading user can set permissions for the uploaded file. When an audio file is shared with other users the audio file is watermarked, transcoded and encrypted so that it is only playable within the disclosed system. Playing and location data is tracked regarding user devices so that if a file is leaked or stolen, the watermark will allow the system to determine what device is the source of the leak or theft.