Apple has agreed to start selling digital songs without copy protection software from its iTunes store along with over-the-air download songs for its popular iPhone, according to people familiar with its plans.
The maker of the iPod is also set to announce a deal to roll out variable pricing on digital songs at the iTunes Music Store with songs priced between 79 cents (53 pence) and $1.29.
Apple is expected to announce the changes at the Macworld Expo trade show in San Francisco later on Tuesday.
Copy protection software, also known as digital rights management or DRM, has proved a controversial topic with music fans and record labels alike.
DRM was designed to prevent fans from illegally sharing digital downloads on file-sharing services. But it also prevented many fans from moving their own songs between devices and became increasingly unpopular.
Apple's founder, Steve Jobs, publicly called on major record labels to drop DRM in February 2007.
In exchange, labels have been asking that iTunes agree to sell songs at variable prices. Currently, iTunes sells all individual songs at 99 cents regardless of their popularity or date of release, unlike most other retail outlets.
Apple is also expected to announce details to allow iPhone 3G and iPod Touch Wifi users to buy songs while on the go, over the air through its popular App Store.
