(A) of distributing songs and full-length recordings on the Internet that will protect copyright holders and foil the many audio pirates who copy and distribute - Correct. Here 'that' refers to 'a standardized way'. In this case, 'that' jumps over the prepositional phrase 'of distributing songs and full-length recordings on the Internet' and modifies 'standardized way'
(B) of distributing songs and full-length recordings on the Internet and to protect copyright holders and foiling the many audio
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(B) of distributing songs and full-length recordings on the Internet and to protect copyright holders and foiling the many audio
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