iTunes Library can be shared over a local network using the closed, proprietary Digital Audio Access Protocol (DAAP), created by Apple for this purpose. DAAP relies on theBonjour network service discovery framework, Apple's implementation of the Zeroconf open network standard. Apple has not made the DAAP specification available to the general public, only to third-party licensees such as Roku. However, the protocol has been reverse-engineered and is now used to stream playlists from non-Apple software (mainly on the Linux platform).^[11]

DAAP allows shared lists of songs within the same subnet to be automatically detected. When a song is shared, iTunes can stream the song but won't save it on the local hard drive, in order to prevent unauthorized copying. Songs in Protected AAC format can also be accessed but authentication is required. A maximum of five users may connect to a single user every 24 hours.

Originally with iTunes 4.0, users could freely access shared music anywhere over the Internet, in addition to one's own subnet, by specifying IP addresses of remote shared song libraries. Apple quickly removed this feature with version 4.0.1, claiming that users were violating the End User License Agreement.

With the release of iTunes 7.0, Apple changed their implementation of DAAP. This change prevents any third-party client, such as a computer running Linux, a modified Xbox, or any computer without iTunes installed, from connecting to a remote iTunes repository. iTunes will still connect as a client to other iTunes servers and to third-party servers

More on Wikipedia  http://en.wikipedia.org/wiki/ITunes

Tags: iTunes, Library, Apple, Share

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