What's been a rumour is now confirmed.
A consortium of movie studios and technology companies backing the
encryption system for high-definition DVDs on Thursday confirmed
that hackers have stolen "title keys" and used them to decrypt
high-definition DVDs through flaws in DVD player software.
Both the title keys and a number of decrypted films have been
posted on peer-to-peer Web sites for downloading and copying, a
spokesman for the Advanced Access Content System Licensing
Authority said on Thursday.
The large size of the files and the high cost of writable
high-definition discs make large-scale copying of high-definition
DVDs impractical, but the attacks on the new format echo the early
days of illegal trafficking in music files, AACS LA spokesman
Michael Ayers said.
"We want to make sure we address this now. It has a potentially
limited impact now but some sobering possibilities," he said.
The hackers did not attack the AACS itself, but stole the keys as
they were exchanged between the DVD and the player to strip the
encryption from the film.
A large-scale failure of the AACS could be a threat to the $24
billion DVD industry, which has started to cool and was counting on
next-generation DVD sales to reinvigorate it.
The hackers obtained the keys from "one or more" player
applications, but AACS LA would not identify them or say whether
their licensing would be revoked.
"We certainly have not ruled out any particular response and we
will take whatever action is appropriate," Ayers said.
The security breach affects both of the high-definition DVD
formats--Sony's Blu-ray and Toshiba's HD DVD, he said.
The confirmation of the attack comes about a month after a hacker
called Muslix64 described in an online posting how he defeated the
encryption system by using DVD player software.
AACS LA founders include IBM, Intel Microsoft, Panasonic, Sony,
Toshiba, Walt Disney and Warner Bros. Studios, a unit of Time
Warner.
http://news.com.com/Hacks+on+high-definition+DVD+players+confirmed/2100-1002_3-6153615.html
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Another attack against Microsoft. It seems like whatever Microsoft
backs, it gets attacked. This new technology is being hacked even
when it's not released worldwide. 
On the other hand, I'm not trusting Sony either. I don't know what
they are implanting in Sony Blu-Ray discs to prevent piracy.
