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Discussion Starter #1
There are separate license agreements for source devices and processor devices under the HDCP umbrella. HDCP-compliant source devices, like cable STBs or DVD players, are free to provide parallel analog outputs or leave the DVI output unencrypted---unless of course other license agreements they are subjecto to say otherwise.


HDCP processor devices, on the other hand, must respect and preserve any encryption that is present on the signals they receive. That means no unencrypted or analog outputs at all, even downrezzed, with an encrypted input.


In short, HDCP does not impose copy protection, it simply enables it, and ensures that it is preserved if it's used.


Ofer:
Quote:
What I don't get is what people are getting from the HDMI license. It seems outragous to me to charge $15,000 a year for the right to use a particular connector...
Well, it's worse than that. HDCP is licensed separately from HDMI. Since most devices that use HDMI need HDCP support, that means two licenses, at a total cost of $20-$30K depending on how you slice it.


But what do they get? Interconnectivity with other devices, compatability with future source material, etc. Clearly at least a few companies have decided it's worth the cost.
 

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Quote:
Originally posted by oferlaor
Jim,


What I don't get is what people are getting from the HDMI license. It seems outragous to me to charge $15,000 a year for the right to use a particular connector...
Politics and greed. HDMI/HDCP is nothing to do with benefits for the consumer and is all about Hollywood greed and paranoia over piracy.


If a manufacturer wants to sell hardware capable of playing future HD software they will have no choice but to buy the HDMI license. If the consumer wants to view the software they will have no choice but to buy the compatible hardware.


The winners, as always, are big business and the losers, as always, are the consumers.


Mark
 

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Discussion Starter #3
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The winners, as always, are big business and the losers, as always, are the consumers.
Oh please. I suppose it will be considered a "loss" that people are able to rent and buy inexpensive 1080p transfers of our favorite movies? Content providers want protection for their investment. DVDs were released before the full potential of broadband file sharing was understood. They are not going to make that mistake again. Without decent copy protection we will not see HD-DVD---and that is when the consumers lose.


Movie producers want assurance that the $150 million spent on "Terminator 10" has at least some chance of being recouped (assuming people want to see it of course). And personally I'm OK with that. Frankly I like a good independent low-budget film but I'm thankful that today's market supports big-budget blockbusters. As a result I'm far more sympathetic to the movie industry in this respect than I am to the music industry. Movies don't have the gross disparity between production and marketing costs that music does.


If HDMI gives content providers enough comfort that rampant piracy will not be enabled by it, more power to them. Yes, we all know it won't stop piracy dead, but the content providers know that too. That's not what they're looking for---as always they simply want piracy to be at a low-enough dollar level to make it financially worthwhile to just "live with it".
 

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Michael,


This is OT, but I disagree (if you want, we can initiate a new thread for HDMI). The $15,000 (or $30,0000) yearly license will simply be rolled back to us. We'll be paying lots more for these titles and the equipment because each of the companies involved with making these movies, cables, transcoding, subtitling, etc. - will all be buying HDMI equipment. It's like a new type of tax for HD material (except that it's not the government who is getting to use the money) :(
 

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Michael,


I should have qualified my statement with "in the short term".


Michael, if HDMI/HDCP indeed becomes necessary for HD-DVD, which looks very likely, then I need to junk a $30K scaler and an $80K CRT projector if I want to use those products. How is that a win situation for this consumer? Clearly this is an extreme example, but MANY people will be forced to replace perfectly good (and probably brand new) kit because of this.


Organised criminals who benefit most from illegal copying will have the resources to break/circumvent HDCP if they choose so that can continue to churn out illegal copies. Copy protection is nonsense. It will always be broken. It solves nothing in the long-run and hurts consumers (in the short term) who bear the consequences of these decisions.


Away from copy protection issues, I agree with you, HDMI will have the benefits you state and so will be a "good thing" in the long run.


I agree with Ofer too, this is OT, but I just wanted to respond ;)


Mark

Quote:
Originally posted by Michael Grant
Oh please. I suppose it will be considered a "loss" that people are able to rent and buy inexpensive 1080p transfers of our favorite movies? Content providers want protection for their investment. DVDs were released before the full potential of broadband file sharing was understood. They are not going to make that mistake again. Without decent copy protection we will not see HD-DVD---and that is when the consumers lose.


Movie producers want assurance that the $150 million spent on "Terminator 10" has at least some chance of being recouped (assuming people want to see it of course). And personally I'm OK with that. Frankly I like a good independent low-budget film but I'm thankful that today's market supports big-budget blockbusters. As a result I'm far more sympathetic to the movie industry in this respect than I am to the music industry. Movies don't have the gross disparity between production and marketing costs that music does.


If HDMI gives content providers enough comfort that rampant piracy will not be enabled by it, more power to them. Yes, we all know it won't stop piracy dead, but the content providers know that too. That's not what they're looking for---as always they simply want piracy to be at a low-enough dollar level to make it financially worthwhile to just "live with it".
 

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Discussion Starter #6
Quote:
This is OT, but I disagree (if you want, we can initiate a new thread for HDMI).
Ofer, feel free to move this whole discussion to another thread. You can do that, can't you? I wouldn't want the initial posts to be missed, that's why I think it's better to move it.
Quote:
The $15,000 (or $30,0000) yearly license will simply be rolled back to us. We'll be paying lots more for these titles and the equipment because each of the companies involved with making these movies, cables, transcoding, subtitling, etc. - will all be buying HDMI equipment. It's like a new type of tax for HD material (except that it's not the government who is getting to use the money)
First of all, you really have no idea how those license fees are being translated to the end-user. You can't say it will cost us "lots more" unless you have numbers. For all we know it's adding all of $5 per player and $1 per disc. Granted, right now HDMI and HDCP outputs tend to be limited to higher-end players, but that very well may have more to do with engineering costs and marketing perception of a "high-end" feature than actual license costs. Secondly, this is a consumer standard, not a broadcast standard. The people doing compression and transcoding will not necessarily be using HDMI. You're clearly overstating the situation here.


And thirdly again I go back to this: HD content providers want protection for their revenue stream. No copy protection, no content. Would you rather pay an extra, say, $2.50 per HD-DVD due to that copy protection, or would you rather not be able to buy them at all?


Mark:
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I need to junk a $30K scaler and an $80K CRT projector if I want to use those products. How is that a win situation for this consumer?
And just how many people would have to do that? You know darn well that's not the typical consumer, and they can't base their business decisions on people like you. Maybe you should change your argument to: it's a loss for you. Then we could agree :)


(Incidentally, HDCP/HDMI alone will not force you to do this. It is perfectly within the HDCP/HDMI standard for an HD-DVD player to provide both component outputs and encrypted digital outputs at the same time. It remains to be seen, however, whether the HD-DVD standard will permit that.)


As for the other copy protection issues: as I said, I don't claim it will halt all bootlegging. But it will certainly curb it. The fact that DVDs were cracked is irrelevant for two reasons. First, that's a disc protection system, and HDCP is a stream protection system. Without going into the details (although we can discuss them in more detail if you like), it's going to be quite expensive for a bootlegger to use HDCP cracking to bootleg HD-DVDs. That means bootleggers will have to sell a lot of pirated discs to make money---and that makes it all the more likely they'll be caught.


So that leaves the possibility of breaking the discs protection, and that's my second point. DVD CSS was a first-generation technology that failed to anticipate the abilities of the average hacker. DVD-Audio and SACD have much more robust copy protection, and HD-DVD I guarantee will be better protected than that. Find me a web site where I can download pirated SACDs, with the original DSD data intact, and we'll talk.


So it is simply false, at least for practical purposes, to state that any copy protection will be broken. It is indeed possible to design a system that's sufficiently robust for this application.

Quote:
Organised criminals who benefit most from illegal copying will have the resources to break/circumvent HDCP if they choose so that can continue to churn out illegal copies.
And if you read my post I said it won't stop such people. But it will deter many, and that's the goal.. First of all, the HDCP cracking equipment alone will be expensive to create because of the controls in placed on chips. (The unique decryption keys are generally built into the chips themselves before they leave the manufacturer to the licensed buyer). So someone will likely have to custom-engineer HDCP decryption hardware, ripping apart existing HDCP-compliant hardware to do it. Secondly, after HDCP is removed you're left with an uncompressed HD stream: for 1080i60, that's something like 1.5Gbps. So you need a terabytee fileserver to store the data, or a real-time video codec. The latter won't be readily available on PCs for awhile. So in short, the economic costs of HDCP-based piracy are far higher than they are with, say, a videocam bootlegger or a WVHS bootlegger.


It's certainly not impossible, and I agree it will happen, but as I said content providers are not looking to completely eliminate it, they're looking to sufficiently curb it.
Quote:
Copy protection is nonsense. It will always be broken. It solves nothing in the long-run and hurts consumers (in the short term) who bear the consequences of these decisions.
No, this is nonsense. The fact that current copy protection schemes have been broken in no ways means they all will be. Has the SACD format been cracked, for example? The MLP tracks from a DVD-Audio disc? The DVD community is learning from past mistakes, and I'm willing to wager that HD-DVDs are pretty darn solid.
 

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Not at all Michael. I couldn't care less about the cost. It's the principle.


Mark
 

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Discussion Starter #8
That's fine, but we still disagree on the principle, Mark. I think it's entirely justifiable for companies to employ DRM and copy protection. I do have a problem with laws like the DMCA though, because they make fair use actions illegal. With the government out of the way, I think it's entirely reasonable for companies to implement whatever DRM they want, and entirely reasonable for us to reject said products because we don't like the restrictions.


And by the way I edited my post a lot, you might want to re-read it and respond to other points (unless Ofer forbids us).
 

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Quote:
Originally posted by Michael Grant
Has the SACD format been cracked, for example? The MLP tracks from a DVD-Audio disc? The DVD community is learning from past mistakes, and I'm willing to wager that HD-DVDs are pretty darn solid.
Not sure what you mean here but I have a hacked player giving me full resolution digital from both these formats...


Where there's a will, there's a way.


Mark
 

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Michael Grant,


Your points are well taken. One thing though. Last time I checked SACD and DVD-Audio were not very successful. I tried a couple of disks they sounded OK, the whole analog input thing turned me off. A real pain to play. They are not easily played on PCs.


Nice copy protection. No profits.


-- Rich
 

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Yeah I would have to say using the comparison of SACD and DVDA and the lack of pirating associated with it, is a bit poor, why bother cracking something no one actually wants and is only a small range is even available...

Criminals put their efforts in to things which will bring them large profits, SACD and DVDA are not going to do that for anyone, not even the record companies...
 

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At last year's CES AVS party, Sam Runco said that he thinks the LESS copy protection that Holywood puts on their stuff, the more stuff they'll sell.


He gave a great example at the fight that was put up to forbid the sale of VCRs, and ultimately everyone (including Holywood, with the sales and rentals of video tapes) made a huge profit by LOSING the copyright fight.


You can't stop the thieves from stealing the data. There's just no way. That's not to say that the copy protection schemes are at fault. It's just that the data ultimately has to come out in RGB format, so it can just be stolen at that point. Sure, it will make the hardware used to steal the content more expensive - but I don't think that's a huge problem there, because far-east counterfit rings make a FORTUNE from bootleg material. A one time investment in special hardware will be quite easy and affordable to them.


I don't think it will deter anything but casual copying and I think that's what they are trying to achieve (reduction in casual copying). That's something they can definitely reduce, but I don't see how HDMI and HDCP will help in that. The real protection has to be on the disks themselves (something we can't see and shouldn't care about unless we want to rip these disks).


I disagree that it's just $1 or even $5. I think you'll pay $5 for your DVD player, $10 for your display, $50-$100 for your cable, $5 for your STB, $100 for your scaler, $10 for your A/V receiver, etc. And that money is all going to development of even more expensive and convoluted protection schemes that mostly annoy and bother me...
 

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"HDCP processor devices, on the other hand, must respect and preserve any encryption that is present on the signals they receive. That means no unencrypted or analog outputs at all, even downrezzed, with an encrypted input."


While this isn't yet an issue for me I can certainly see the above becoming a problem. Wonder what it would take to hack the firmware in my CS-2 to not ever turn off the analog outputs?


Shawn
 

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sfogg,


You'll need the source code for the firmware.


FE had demonstrated, at one point, their CS-2 with analog output and HDCP sources (I guess they saw the benefit, if they used it during a demonstration).


Still, they could lose a LOT of money if they made it easy...


I would say that this was very near to impossible.

And just to be sure, we won't discuss hacking on this forum.
 

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Discussion Starter #15
Quote:
Not sure what you mean here but I have a hacked player giving me full resolution digital from both these formats...Where there's a will, there's a way.
I would be interested to learn more about this player of yours, by the way. For example, do you get full access to the original DSD data, or is it converted to PCM? What DAC receives this digital data, and what form is it in?


But I agree with this principle: where there is a will, there is a way. I would take care to clarify, however, the difference between hacks such as yours for the purpose of use and hacks for the purpose of bootlegging. This is actually why I think the real problem is not with copy protection itself but with government regulation of it like the USA's DMCA laws. Your hacked player would be illegal under such laws, even though you're using it entirely for fair use purposes! That's just not right. Likewise, if an HDCP stripper were to appear on the black market, it ought to be legal to own for the same reason.
 

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"You'll need the source code for the firmware. "


Firmware is downloadable off FEs site for upgrades and such. Programs like IDA Pro disassemble firmware back to source code.


"Still, they could lose a LOT of money if they made it easy..."


I'm sure it isn't easy and would be quite time consuming. FE isn't doing anything to make it easy. But any machine that has upgradeable firmware and supports HDMI could be hacked if one was so inclinded to spend the time to do it, as has been demonstrated on some of the firmware hacks for various DVD players among others. Or hardware hacks like SDI hacks/mods, region free hacks, macrovision hacks and digital outputs and such.


Shawn
 

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Michael,


" For example, do you get full access to the original DSD data, or is it converted to PCM? What DAC receives this digital data, and what form is it in?"


Getting access to the DSD data on a player is *easy*. The problem is there is very little that can be done with it once you have that. Fairly recently a PC capture card was released which could take in DSD in the format fed to a players DSD capable DACs but it was very expensive.


Shawn
 

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Discussion Starter #18
Quote:
Your points are well taken. One thing though. Last time I checked SACD and DVD-Audio were not very successful. I tried a couple of disks they sounded OK, the whole analog input thing turned me off. A real pain to play. They are not easily played on PCs.
Fair point. However, I would claim that the reason why these formats haven't taken off isn't specifically because of their copy protection. Rather, it is due to the more general principle that their perceived benefits of the format aren't large enough to justify the added costs of using it. SACD and DVD-Audio players have taken a long time for their prices to drop, to their detriment.


When CDs first came out, nobody could rip them. It wasn't impossible to do, just impractical for the average user. And yet, CDs took off anyway. We can argue about whether or not they were forced down our throats but the fact remains that the format was a success long before people realized they could be copied.


Same goes with DVD. The success of the DVD has nothing to do with its ability to be copied. For 99% of the consumers, they don't care about that yet. And yet, there is a balance---DivX failed, for example, because its DRM measures were rejected by the market.


So suggesting that copy protection is going to prevent HD-DVD from being successful is too limited an argument. As in all of these cases, the question is whether consumers will appreciate the benefits of the format and decide that it's worth the cost of new equipment to play it.
 

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Quote:
Originally posted by Michael Grant
Fair point. However, I would claim that the reason why these formats haven't taken off isn't specifically because of their copy protection. Rather, it is due to the more general principle that their perceived benefits of the format aren't large enough to justify the added costs of using it. SACD and DVD-Audio players have taken a long time for their prices to drop, to their detriment.
Of course it is because of their copy protected. When released, almost no one had 5 analog inputs on their receivers.

Quote:



When CDs first came out, nobody could rip them. It wasn't impossible to do, just impractical for the average user. And yet, CDs took off anyway. We can argue about whether or not they were forced down our throats but the fact remains that the format was a success long before people realized they could be copied.
[/
No body had PC's either. Times and expectations change.

Quote:


Same goes with DVD. The success of the DVD has nothing to do with its ability to be copied. For 99% of the consumers, they don't care about that yet. And yet, there is a balance---DivX failed, for example, because its DRM measures were rejected by the market.
Somewhat true. However, Microsoft insisted that DVD's be playable on PCs. Hard to tell how much that helped. I think it was a big deal.

Quote:


So suggesting that copy protection is going to prevent HD-DVD from being successful is too limited an argument. As in all of these cases, the question is whether consumers will appreciate the benefits of the format and decide that it's worth the cost of new equipment to play it.
I think it is too early to tell. For example, if DRM includes an Internet or phone connection to permit you to play HD-DVD's, it may in fact prevent them from being successful. Remember DIVX?


-- Rich
 

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Discussion Starter #20
Quote:
At last year's CES AVS party, Sam Runco said that he thinks the LESS copy protection that Holywood puts on their stuff, the more stuff they'll sell.
Yeah, so? It doesn't make it so. Sam sells projectors, not DVDs.
Quote:
He gave a great example at the fight that was put up to forbid the sale of VCRs, and ultimately everyone (including Holywood, with the sales and rentals of video tapes) made a huge profit by LOSING the copyright fight.
Only problem is, it's not a great example. The copy protection their proposing here would do nothing to prevent the sale and rental of HD-DVDs.
Quote:
Sure, it will make the hardware used to steal the content more expensive - but I don't think that's a huge problem there, because far-east counterfit rings make a FORTUNE from bootleg material.
Yes, they do. However I think that the MPAA understands that it's relatively powerless to fight bootlegging in countries where it doesn't have the government's support. But they can fight the importation of bootlegs into countries like the U.S., as they currently do.
Quote:
I disagree that it's just $1 or even $5. I think you'll pay $5 for your DVD player, $10 for your display, $50-$100 for your cable, $5 for your STB, $100 for your scaler, $10 for your A/V receiver, etc.
And you have no more basis to justify these numbers than I do mine.
 
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