From CNN.com:

SEATTLE, Washington (AP) -- Microsoft Corp.'s effort to compete against Apple's iPod juggernaut will focus on the idea that people want to be able to easily share music with friends and others.

The software maker said Thursday that its portable Zune media player, scheduled to be available around the holiday season, will include wireless technology to let people share some of their favorite songs, playlists or pictures with other Zune users who are close by.

Those users can listen to the songs three times over three days before deciding whether to purchase it themselves.

"The idea is to legitimize peer-to-peer sharing in a healthy way that works for everybody," said J Allard, a Microsoft vice president in charge of the Zune product line.
Continue reading about Zune here.