The .aax file is a file format used by audio- based products that are marketed and sold by Audible Incorporated. Audible is one of the subsidiaries owned by Amazon. Its primary business function is to sell various digital audio materials like audiobooks, audio versions of magazines and newspapers, TV programs and radio broadcasts. These digital audio products are encoded in .aax format that can be accessed using popular audio or multimedia softwares (e.g. Apple iTunes, Amazon Kindle) and as well as portable media players (e.g. Apple iPods and Microsoft Zune).
AAX audio files are usually DRM protected. The right to convert and modify .aax files are restricted and reserved to the manufacturers or owners.
There is an ongoing dispute regarding the use of DRM protected files and it is not fully clear whether they can be treated like copyrighted materials. Although, with protection issues, .aax files can be converted to more common formats like .mp3 using a licensed converter softwares.
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