A system and method for securely downloading digital music data includes a
portable handheld device having a detachable smart card for decrypting
encrypted music as it is played thereby allowing the portable device to
receive and play encrypted music files. The smart card includes both a
digital decryption key and hardware that decrypt the encrypted music using
the key. The portable handheld device is configured to connect to a remote
server, using the decryption key to establish a secure data communications
channel, in order to receive the encrypted music files from the remote
server. In an alternative system, a personal computer (PC) that is
configured to connect to the smart card allows the PC to download and play
the encrypted music. In another aspect of the system and method, the smart
card provides the remote server with information that is used to pay for
the downloaded digital music data. In one embodiment, the smart card has a
stored monetary value that is read and modified by the remote server.
Alternatively, data stored on the smart card, such as personal
identification information, can be used to bill the end user for the
digital data. In another embodiment of the invention, the method includes
accessing digital data stored at one or more servers using an access key
stored on the smart card. In this embodiment, the method includes reading
access keys contained on the smart card and accessing the designated
server using the access keys.