You may find this site interesting and I hope it answers your questions.
http://www.avforums.com/forums/tvs/456055-hdcp-converter-non-hdcp-compliant-tv.html
What is HDCP?
HDCP
stands for High-Bandwidth Digital Content Protection, a copy
protection scheme to eliminate the possibility of intercepting
digital data midstream between the source to the display. The
format designed by Intel and licensed by Digital Content
Protection, LLC using an authentication and key exchange procedure
before video and audio is presented. Products compatible
with the HDCP scheme such as DVD players, satellite and cable HDTV
set-top-boxes, as well as few entertainment PCs requires a secure
connection to a compliant display, the process often described as
the handshake. Due to the increase in manufacturers
employing HDCP in their equipment, it is highly recommended that
any HDTV you purchase is compatible. Although most video
devices support high-definition video over component output,
analog connections are scheduled to phase out in the future or
possibly forced to limited resolutions output.
Why
is it important to me?
Although
manufacturers are still making most products with at least
component HD output, new generation of products like HD-DVD and
Blu-Ray devices will limit the analog output resolution (Analog
defined as Component or RGBHV). The highest resolutions
these devices can output (720p/1080i/1080p) will be available on
via the digital (DVI or HDMI) connections that employ HDCP
encryption. Any new HDTV purchase should have a digital HDCP
compatible input.
It
is important to note that HDCP is currently not a standard used in
PC monitors, and almost none of these displays have Component
inputs. Although PC monitors are HDTV capable, HDCP
encryption limits this type of use. If you use an HTPC and
want to ensure dual use of your new flat panel display, look for
HDCP compatibility.
How
does it work?
A
simple answer is that an HDCP session will result in the exchange
of keys between the source and display device. The source
device will query the display to make sure that the equipment is
HDCP compliant before video is shown. Non-HDCP devices such
as PC's and older model DVI products will work with any DVI
compliant display, but the HDCP compliant boxes will show an image
only on HDCP compliant display.
Other
products affected by HDCP are scalers, switchers, and splitters
(distribution amps). While
these devices do no authentication for key exchange, they must be
able to transmit the presence of HDCP if the video is handled
(processed) in any way. Due to the two different formats of
digital connections, occasional inability for proper
communications may result in loss of interoperability. The
newer format, HDMI was designed to be backwards compatible with
DVI and in most instances, the two signal types are easily
adaptable, but older devices may not always work well with in-line
devices like scalers or switchers. These problems can
sometimes be fixed in "firmware' although that is not always
the case. Incompatibility is often displays on-screen as a
snowy image or an error message.
Hope this explains it for you.
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