LaLa Update 2: "Future Proof" Purchase For $2.99 But Don't Try To Trade It

• One promised feature we heard about from LaLa that has gotten almost no play in the media is the ability to "future-proof their digital music purchases with the assurance that they can get the physical CD for a small convenience fee starting at $2.99."  Seems an expensive promise to keep.
• As we reported yesterday LaLa's AAC files are watermarked with user info.  Purchaser's will apparently be able to transfer the tracks to other devices but not to their PC.
• Tracks can be sold or traded, but when they are the ownership is transfered and can only be used by the new user.
• LaLa's technology takes advantage of the iPod's one way architecture which prevents backloading tracks from the device.  Hacks exists but aren't easy or readily available.

Read our original LaLa story here and the first update here.