Intel has said this weekend that it will sue anyone who uses the HDCP “Master Key” that was recently leaked to the Web.
The crypto key can be used to break the HDCP tech that limits users from recording digital TV streams and Blu-ray discs.
The technology giant, which developed HDCP, says: “There are laws to protect both the intellectual property involved as well as the content that is created and owned by the content providers. Should a circumvention device be created using this information, we and others would avail ourselves, as appropriate, of those remedies.”
Earlier in the week, Intel confirmed that the “master key” was authentic, and could be used to break the content protection scheme.
The HDCP master key, which is 28200 letters and numbers, can be used to create “device keys,” thus making all current and future devices “HDCP-free” given the right hardware.
It is unclear how the “master key” was deciphered, but Paul Kocher, the chief scientist at Cryptography Research, gives a possible reason. Kocher says “somebody in the business of making HDCP-compatible devices, who had access to at least 50 individual device keys, would have been able to reconstruct the master key by analyzing “mathematical similarities” in the individual device keys.”
Result for: content provider
It looks like Hulu, the streaming video service owned by NBC Universal, News Corp & Disney is preparing to become a publicly traded company. The New York Times is reporting unnamed sources indicated an IPO (Initial Public Offering) could happen as early as this fall.
Assuming they can convince potential investors their new subscription service, Hulu Plus, can be profitable, there’s still another hurdle to overcome. Hulu’s management, led by ex-Amazon.com executive Jason Kilar, have been proponents of getting Hulu playing on every screen possible. But some of Kilar’s better decisions have been undermined by Hulu’s owners.
It’s quite possible the insider information given to Times reporters was intended to see how potential investors respond. An IPO may wait if their reaction isn’t positive.
But assuming they do go public eventually, Kilar and his team will need less oversight from Hulu’s content providers. Those providers have been resistant to the idea of Hulu’s free (ad supported) content making its way to TV screens through devices like media center PCs and game consoles.
Looking at it strictly from Hulu’s point of view, this seems like a big barrier to attracting subscribers for Hulu Plus. The problem is Hulu’s content owners are trying to solve the wrong problem.
The question isn’t whether some type of free internet distribution will compete with traditional television services. The competition, both licensed and unauthorized, is already there and the market isn’t going away just because they don’t cater to it.
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Result for: content provider
According to Boxee CEO Avner Ronen, the company is working on an app for the iPhone,iPad and Android devices.
The iPad app is already in development while the Android app is so far, just a “coming soon.” Boxee recently listed a job opening for “lead developer on software for Apple’s mobile operating systems.”
There is currently an iPhone app, but it serves as little more than a remote control for the desktop software. The new app would allow for users to stream video on their portable devices.
Speaking about the iPad, Ronen says (via LATimes): “It’s perfect for video. You can start watching in bed. And then just take it with you.”
The company is also looking to add more content providers, better social networking features and to introduce a centralized payment platform.
A recent study showed that 75 percent of all digital companies were actively looking for a strategy for video on the iPad, meaning the tablet may be a little more than a “fad.”
