An anonymous reader writes "BoingBoing Gadgets has updated their story from yesterday on DRM contained in the new iPod Shuffle. (We also discussed this rumor last week.) It's a false alarm. There is a chip in the headphone controls but it is just an encoder chip. There is no DRM and no reason to believe that third party headphones wouldn't work with the new Shuffle. (Apple would still prefer you to license the encoder under the Made for iPod program, but with no DRM, there is no DMCA risk to a manufacturer reverse engineering it.) The money quote: 'For the record, we do not believe that the new iPod headphones with in-line remote use DRM that affects audio playback in any way.'"