Posted on June 29, 2008, Shawn Sines Microsoft Introducing DRM Tool for 360
Microsoft has released a Content License Transfer Tool or DRM Tool for the Xbox 360. What this means to you is that if for any reason your current Xbox should need to be replaced, such as an older model succumbing to the red ring of death, you don’t have to worry about game licenses native to the old box. The DRM will transfer the license to your new console so that you can play your game both on and offline.
Here’s a video from Major Nelson on the particulars.
via Bethesda Blog