Intel has confirmed that the earlier reports regarding the leaked HDCP “master key” are indeed accurate and the leak involves specific code that is used to secure the copyright-protection standard. The code could possibly be used to create usable source and sync keys, circumventing the DRM protection in many Blu-ray players, DVD players, displays, and set-top boxes. The good news for companies who support HDCP is that the modifications to existing hardware would be difficult and costly, as the chips would need to be flashed. Aside from technical barriers that might prevent the circumventing of the DRM protections, it was also mentioned that there are legal remedies, particularly under the DMCA which could also be used to diffuse the situation.
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