Apple is allegedly paying more for its same-day-as-DVD iTunes movies than it charges customers for the downloads, indicating that the company views the movies as a loss leader to help sell other products. The ever-popular “person familiar with the matter” told the Wall Street Journal (subscription) that Apple pays the movie studios a wholesale price of $16 per movie while only charging customers $14.99 for new releases. The $1.01 loss on each movie sale is sure to add up, but Apple is apparently confident that such an agreement will pay off in the long run.

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The increasing use of encryption software - such as Microsoft’s own BitLocker - by cyber-criminals has led Microsoft to develop a range of tools that law enforcement agents can use to get around the software, executives at the company said.

Microsoft published the first Toolset, the so-called on-line computer forensics Evidence Extractor (Café), to law enforcement authorities last June and it is now approximately 2,000 agents throughout the world, said Anthony Fung, Senior Regional Manager for Asia-Pacific in the Microsoft Internet Security and Anti-Counterfeiting Group. Microsoft offers the software free agents.

While Microsoft can have wide use of café, some experts are sceptical about using this kind of tool to restore data, and also the developer of the product at Microsoft admits that it is not accepted by some users.