The Korea Herald has a rather disturbing story to report with regard to innovation in Korea (Music industry emits static on MP3 phones). Apparently, developers of cellphones in Korea have begun adding MP3 capability to the small, ubiquitous, portable devices. An obvious enhancement for cellphones, I would think. However, the Korean equivalents of the RIAA were upset by this and have essentially forced Korean cellphone manufacturers to reduce the quality of playback for non-DRM'd music:

After fierce debate over the new mp3 phone, the two parties have found some common ground by agreeing that MP3 phones can play illegal music files, but only at low sound quality.

....However, the controversy is still raging with Samsung Electronics insisting that record producers should eventually let them have at least 96kbps.

Hopefully, the RIAA won't try something like this in the States.

UPDATE: The Korea Times has more info: MP3 Phone Disputes Show Sign of Settlement.