There's two scenarios but both have their problems 1) only works with music purchased from iTunes. Not much use 2) works with all music. how does Apple verify

There's two scenarios but both have their problems 1) only works with music purchased from iTunes. Not much use 2) works with all music. how does Apple verify that you actually own the music (and if they've got a licensing deal with the record labels they'll need to keep them happy) The way to solve both problems is to offer a subscription service like Microsoft's Zune Pass. Pay a monthly fee and stream any music you like.