“There are laws to protect both the intellectual property involved as well as the content that is created and owned by the content providers,” said Tom Waldrop, a spokesman for the company, which developed HDCP. “Should a circumvention device be created using this information, we and others would avail ourselves, as appropriate, of those remedies.”
What standing does Intel have to sue? If someone uses the algorithm they can effectively create the HDCP authorization, so it’s not bypassed. Now if said device allows someone to output it to a non-HDCP device, would that be circumventing the DRM? To me, circumvention is evasion or overcoming of some measure; if the measure is left in place, you’re not exactly evading it.
Further, there was a case a couple years ago where Lexmark tried to invoke the DMCA against a company for reverse engineering its software. The company won the case for the circumvention because, as per “The Chamberlain Group, Inc. v. Skylink Technologies, Inc.”, “(1) they had ownership of a copyrighted work, (2) it was controlled by a technological measure that was circumvented (3) third parties can access it (4) without authorization in a way that (5) infringes rights protected by the Copyright Act due to a product created, advertised, or provided by the defendant…” and in the Lexmark case (Lexmark Int’l v. Static Control Components) the court said “‘Lock-out’ codes—codes that must be performed in a certain way in order to bypass a security system—are generally considered functional rather than creative, and thus unprotectable.” Thus, there’s no copyright claim. As for the DMCA claim the court opined that “Anyone who buys a Lexmark printer may read the literal code of the Printer Engine Program directly from the printer memory, with or without the benefit of the authentication sequence[…]No security device, in other words, protects access to the Printer Engine Program[…]”. Basically, if you purchased a HD media device and you can figure how to read the coding, with or without authorization, it’s not controlling access. Moreover, if someone creates a program, it’s not a copyright infringement if it needs and uses the original program for interoperability.