Abstract: A video network includes public kiosks having digital storage capacity. Centralized inventory control manages the video files stored at individual kiosks or network LANs. A user requests a multimedia file for download, and selects various ancillary files and control features, such as languages, subtitles, control of nudity, etc. The requested file is encrypted according to an encryption key, watermarked, and downloaded from a high-speed port of a public kiosk to a hand-held proprietary high speed memory device of a user. Payment is received at the time of request or at the time of download, and royalties are distributed by the video network to copyright holders. Computer applications or playback devices allow users to store and/or play video files that have been downloaded to a hand-held device while managing and enforcing digital rights of content providers through the watermarking and/or encryption.