A system for administering the distribution of digitally distributable
works, comprises an encapsulation facility operable to encapsulate a
digitally distributable work with predetermined conditions of use to
create an encapsulated work, and distribution means for distributing the
encapsulated work from a transferor in possession thereof, to a
transferee. The encapsulated work has a state which is alterable between
an enabled state in which the digitally distributable work is
unconditionally enabled for use, and a disabled state in which the
digitally distributable work is disabled for use. The system also has a
switching means operable to switch the state of the encapsulated work to
be in the disabled state upon transfer of the digitally distributable
work form the transferor to a transferee, and to be in the enabled state
when the predetermined conditions of use are complied with by the
transferee. An administration facility stores distribution data relating
to a distribution chain of the digitally distributable work and
distributes a portion of a predetermined purchase price paid by the
transferee for the digitally distributable work to a number of the
preceding transferors in the distribution chain.