A method for managing rights in digital content includes generating rights data for a piece of digital content and forming a piece of rights managed digital content by associating the rights data with the piece of digital content. The rights data includes parameters that govern the terms on which the content may be licensed, and may include a list of entities to which the content may be licensed, a respective set of one or more rights that each such entity has in the digital content, and any conditions that may be placed on those rights. A method for licensing rights managed digital content includes receiving a license request for a license to use the piece of rights managed digital content, where the license request includes such a signed rights label. The digital signature on the signed rights label is validated to determine whether a trusted entity issued the signed rights label. If a trusted entity issued the signed rights label, a license to use the piece of rights managed digital content in accordance with the rights data may be issued.