Comment JVC is ignoring the obvious (Score 1) 348
Their goal: prevent the masses from duplicating their proprietary (everything is proprietary when first released) video streams by encrypting the uncompressed data.
JoeSchmoeTheVideoPirate's goal: duplicate the video. Simple as that.
That goal is easily attainable even with internal decryption hardware. At some point in the process, the video will become decrypted, and most likely will become analog at some point to be displayed a/an CRT(s) in the HDTV unit.
The conclusion, with the help of a screwdriver or two, a soldering iron, an oscilloscope and a logic probe, it would be very possible to find that decrypted stream within the HDTV reciever.
Once you have the stream you can do anything you want with it.
JVC is in no position to prevent piracy. Hardware based encryption schemes will be broken, no question about it. The industry positioning and system of royalties and expensive distribution will have to change and cause the "benefits" of piracy to the consumer base to be eliminated.