Hackers are reported to have broken the encryption on DVDs by "stealing" the "title keys" to decrypt "high-definition DVDs through flaws in DVD player software" (
yahoo link here). Title keys and some decrypted films have been posted on peer-to-peer Web sites for downloading. "The hackers did not attack the AACS encryption system itself, but stole the keys as they were exchanged between the DVD and the player to strip the encryption from the film." The high cost of writable hi-definition discs make large-scale copying of high-definition DVDs impractical, it is asserted. Both Sony's Blu-Ray and Toshiba's HD DVD are affected.
We'll see how long it is before the discs are widely reproduced. And to term the loss of keys as "stealing" is really a euphemism for the insecurity of the industry's so-called security. This was how elections may have been stolen in states using electronic voting machines.
Following up on this post, the Advanced Access Content System (AACS) Licensing Authority confirmed today that the attack has been successful (http://news.yahoo.com/s/nm/20070125/tc_nm/hackers_dvd_dc). The story is somewhat less certain as to whether large scale copying DVDs won't occur and have a major effect on industry revenues.
(off-topic) From slashdot, the daily patent horror story:
Microsoft Copies Idea, Admits It, Then Patents It.