It seems as though Microsoft can't rescue the Palladium name from flaming, so they just dropped it. The name may have changed, but the idea is the same. They said they also released the source code for it.
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To address the criticism, the company has decided to release the source code of the core part of the software, known as the nub or nexus, so that others can verify it is secure and is doing only what the company has claimed.