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What is HDCP?

 
High-Bandwidth Digital Content Protection (HDCP) is a form of Digital Rights Management (DRM) developed by Intel Corporation to control digital audio and video content as it travels across Digital Visual Interface (DVI) or High-Definition Multimedia Interface (HDMI) connections. The HDCP specification is proprietary and an implementation of HDCP requires a license.
 
HDCP is licensed by Digital Content Protection, LLC, a subsidiary of Intel. In addition to paying fees, licensees agree to limit the capabilities of their products. For example, High-definition digital video content must be restricted to DVD quality on non-HDCP compliant video outputs when requested by the source. DVD-Audio content is restricted to DAT quality on non-HDCP digital audio outputs (analog audio outputs have no quality limits). Licensees cannot allow their devices to make copies of content, and must design their products to effectively frustrate attempts to defeat the content protection requirements.
 
What does this mean to me?
There are two main forms of input for display devices like televisions, monitors and projectors: Digital and Analog. When an analog input is used, quality is diminished. When a true digital connection is established, there is no diminishing of quality. With the rise of DVD and DVR recording devices, media companies are concerned with the recording of their products.
 
Consumers have always been able to record their favorite television shows with a VCR so what is the big deal now? When you record an your favorite show with a VCR, you are recording an analog copy of the show. This has degraded sound and video quality.
 
Recording of a true digital copy of your favorite show would be an EXACT copy of the original media. Why would you buy the season DVD set, if you could record your own comparable version? Most people would not.