The latest hack of Johansen and Farantzos, who operate under the name DoubleTwist Ventures, does not actually remove DRM from files, but instead adds another layer on top of what already exists. It is in this layer that the technology lies which enables songs from music services other than iTunes to play on an iPod.
Although this could affect sales at Apple's own iTunes Store in a negative way, it could, however, be a plus for iPod sales.
Some believe that it's for this reason that Apple hasn't reacted aggressively thus far. But Apple is no stranger to taking legal action, especially with regards to its intellectual property, so many believe that a legal response from Apple is a strong possibility in the foreseeable future.
Source:
GigaOM.Com