A license server and corresponding method are provided for managing the rights of content as it is propagates through a social network. A license server receives a distribution package from a content producer and establishes a plurality of level-licenses, one for each of n allowable levels as defined by the content producer. Level-licenses define level-rights, or access rules, based on alteration definitions and other distribution parameters provided by the content producer for each allowable level. Alteration definitions may identify degradation characteristics or augmentation files for association with the distributed digital content. Content recipients who receive encrypted copies of the distributed digital content may request a license from the license server. Upon authentication, a license and decryption key is sent to a valid content recipient to enable viewing of a form of the digital content in accordance with the level-rights predetermined by the content producer for that level of access.