I imagine this could be worked around by using forked encoders that are designed to introduce the watermark when encoding lossy versions. This of course would

I imagine this could be worked around by using forked encoders that are designed to introduce the watermark when encoding lossy versions. This of course would mean the watermark would not survive transcoding from lossless, but as we can see in TFA the watermark can be made useless all the same without such efforts. With that said the oxygen malpractitioners that run the music industry have never put actual consumers' satisfaction above implementing trivially circumvented security theater, so pirates win all the same in all scenarios.