Corel Software, who purchased InterVideo last August, have issued a mandatory update for all WinDVD owners who wish to continue to use the software to view Blu-ray and HD DVD discs.
The update is issued to counter the recent hacks that extracted WinDVD Device Keys and used them to copy DRM protected Blu-ray and HD DVD discs. The copy protection system for both high definition formats is called AACS. AACS combines Device Key stored in playback unit with Volume and Title Keys stored on each disc to decrypt disc content.
By figuring out a Device Key, hackers can play back protected content and duplicate it freely. But AACS is designed to counteract. Compromised Device Keys are simply revoked, and all new high-definition discs made afterwards will refuse to play on a revoked device.
Hackers have been expecting this batch to come and are hoping to extract the new Device Key as well. The battle between hackers and copy protection systems will go on for a while with neither sides being able to score a definitive win.