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DRM is
Digital Rights Management
It is a way to keep piracy under control by various means
For example DRM on Borderlands DLC (downloadable content) limits the game to be registered on a maximum of 5 computers and it must be registered otherwise it the content will be unplayable
If the maximum of 5 computers has been reached you must purchase a new key for the DLC
For people who don't pirate games this isn't really an issue except in certain rare cases as is the case with green man gaming and the copy of ArmA 2 they gave away
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