After reading the posts and story above, I think you guys are living in medieval times as slaves. In India there are no such contracts since almost all phones are not bought through the telecom companies and are hence not subsidized. The low call rates, cheapest in the world, more than make up for the non-subsidized handset market. Call rates are only headed further south with more competition arriving.
I fail to understand what does physically putting a watermark on the CD achieve. The leaker is obviously going to RIP the songs of the CD and leak it in MP3 format. What is the use of the watermark then? Rather they should at least try to appear to protect their music by using some DRM sort of technology.