Gates said that no one is satisfied with the current state of DRM, which "causes too much pain for legitmate buyers" while trying to distinguish between legal and illegal uses. He says no one has done it right, yet. There are "huge problems" with DRM, he says, and "we need more flexible models, such as the ability to "buy an artist out for life" (not sure what he means). He also criticized DRM schemes that try to install intelligence in each copy so that it is device specific.Another blogger who attended the Q&A session says Gates added that "DRM is not where it should be. In the end of the day incentive systems (for artists) make a difference. But we don't have the right thing here in terms of simplicity or interoperability."
His short term advice: "People should just buy a cd and rip it. You are legal then."