Earlier this month, it was reported that the master-key that overrides or unlocks HDCP-encrypted digital content may have been leaked. The worst fears of the HDCP team are coming true, with Intel, a main developer of HDCP, confirming that the master-key leak is genuine. High-bandwidth Digital Content Protection (HDCP) is everywhere, wherever there's commercial high-definition video content, such as Blu-ray movie titles, HDTV set-top boxes, PCs capable of Blu-ray playback, and so on. It is an encryption layer that protects the HD content in its natural audio-video quality from being ripped. Without HDCP one would still be able to watch HD content, albeit with degraded quality.

The immediate repercussions of the master key leak are directed at consumer electronics manufacturers, they might hesitate to adopt HDCP paying its royalty for making use of the protocol, there is technically no fidelity left in it. Grey-market and el-cheapo consumer electronic manufacturers can circumvent HDCP compliance to offer near-perfect video playback. What's worse, it's party-time for pirates. Devices that recover digital content while retaining perfect picture/audio quality by stripping out the encryption can be made. Whatever the consequences Intel maintains it won't affect HDCP much.

"We believe that this technology will remain effective," said Intel's spokesperson Tom Waldrop. "There's a large install base of licensed devices including several hundred licensees that will continue to use it and in any case, were a (circumvention) device to appear that attempts to take advantage of this particular hack there are legal remedies, particularly under the DMCA (Digital Millennium Copyright Act)," he added. This indicates that the publishing industry will indeed have to fall back to DMCA for enforcing IPR. Again, a company the size of Intel won't leave any stone unturned in pursuing manufacturers of unauthorized devices.