Since the service will be expected to protect copyright somehow, it uses watermarking technology that will make it possible to identify a movie being shared illegally and link it to the users' account. This watermarking won't be visible and won't cause any problems for the user, unless the download is spread through file sharing networks. The company believes that watermarking is an excellent alternative to DRM for the consumer.
To encourage users to share the movies they download to more users (help with distribution), Headweb will offer "credits" which can be later used as payment in the store. While its not fully Live yet, Headweb claimed in July that around 500 titles have been brought to the service. Set for launch in Autumn, Headweb has already made its way into a report received by the Swedish Justice Department on the development of legal solutions for downloading music and film over the Internet.
For more information: http://www.headweb.com/