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How does HDCP discourage pirating of protected content?

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How does HDCP discourage pirating of protected content?

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HDCP offers content protection for the link between devices; not generally for inside a device. HDCP performs encryption on the data just before the TMDS PHY in a source, and decrypts it just after the TMDS PHY in a sink. HDCP offers a system renewability feature that allows content providers to revoke keys from devices dynamically from the originating content source.

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