HD-DVD AACS Copy Protection Cracked?
Possibly, according to this article (and reported all over the web). However, it's early yet, and unclear just how real this might be... we'll need to wait and see.
For those of you who don't know, AACS is the copy-protection scheme used by both HD-DVD and Blu-Ray discs. (It's worth noting Blu-Ray has an additional protection layer on top of AACS that hasn't been broken yet.) Just as CCS was cracked for DVDs, it appears we may be on path to where it will be possible to rip high-definition video content to PCs. Obviously, that opens up a variety of scenarios, from what I personally consider cool (storage on home media servers) to uncool and illegal (piracy).
I won't quote the whole article, but this aspect of the crack is worth discussing:
The approach of AACS provisions each individual player with a unique set of decryption keys which are used in a broadcast encryption scheme. This approach allows licensors to "revoke" individual players, or more specifically, the decryption keys associated with the player. Thus, if a given player's keys are compromised by an attacker, the AACS licensing authority can simply revoke those keys in future content, making the keys/player useless for decrypting new titles.
In short, there's a faint chance that AACS licensing authority may choose to invalidate existing HD-DVD players, meaning they would be unable to play future HD-DVD releases. However, what's unclear to me is whether the ability to deactivate these players can be done surgically (ie, only deactivate individual players known to be cracked), and how these players would be identified. Even if a "bad" player (and presumably, the operator of that player) could be identified, the hole already exists for all of the currently available content.
For what it's worth, I doubt there will be HD-DVD player deactivations coming down the pipe. Even assuming this route was chosen, I have absolutely no idea how they'd identify individual players and users. That leaves the nuclear option of deactivating all existing HD-DVD players such that they couldn't play future releases - and that would never happen. I have no secret insight into this, but I can't see the association wanting to take the PR hit on this right now.
Where it gets interesting is when you think about the ramifications on this crack for the HD-DVD / Blu-Ray "war". You can spin this two ways. One is that this is a net benefit for Blu-Ray as studios may see it as a more secure format and choose to release more content for it. Another is that the (still hypothetical) ability to rip HD-DVDs and use them on home media servers (and unfortunately, enable piracy) may make the format significantly more popular with users. No one likes DRM, after all.
For the sake of the argument, let's posit two stakes: 1) this crack is real, and will lead to HD-DVD ripping utilities, and 2) the AACS authority will not deactivate HD-DVD players in any significant number. Assuming these prove true, I think what we may see here is a tipping point in the battle in HD-DVD's favor. My suspicion is that we'll begin to see HD-DVD sales take off as consumers vote for DRM-"free" content with their wallets. This could prove wrong if every studio suddenly tips to Blu-Ray, but I just don't see that happening - it's still too unclear which format has an edge right now for them to want to take that chance.