SF-based DoubleTwist, the DRM-fighting startup from famed hacker “DVD” Jon Lech Johanson, has raised funding from Skype-backer Index Ventures and Norway’s NorthZone Ventures, reports FT. After an unfulfilled partnership with fellow traveler Michael Robertson, Johanson launched DoubleTwist in 2006, with the goal of letting third parties understand Apple’s (NSDQ: AAPL) DRM, essentially rendering it useless (though technically not breaking it). Now it sounds like his company is engaged in more garden variety DRM busting, allowing users to convert bought iTunes tracks into unprotected file formats. It’s also launching its obligatory Facebook app for file sharing. While various anti-DRM apps have been available for some time, the company is aiming to reach a mass, non-technical audience. That being said, with more and more online retailers selling DRM-free MP3s, the market for this service may be dwindling.

Crave: The new desktop app allows any kind of music, photo, or video file to be shared between a long list of portable media players, and through social networks...The software automatically re-records song files as MP3 files so they can be transferred to any device. It only does this for songs you own or are authorized to play in iTunes.

For now, the devices supported include Sony (NYSE: SNE) PSP, Nokia’s (NYSE: NOK) N-series phones, Sony Ericsson’s (NSDQ: ERIC) Walkman and Cybershop lines, LG’s (SEO: 066570) Viewty, and Microsoft’s (NSDQ: MSFT) Windows Mobile smartphones such as Palm’s (NSDQ: PALM) Treo and HTC models, reports AP. More in release here.

• Co-opting DRM As a Business Model