Implementation of HDCP requires a license obtainable from the Digital Content Protection, LLC, which then issues a set of unique secret device keys to all authorized devices. During authentication, the receiver will only accept content once it demonstrates knowledge of the keys. Furthermore, to prevent eavesdropping and stealing of the data, the transmitter and receiver will generate a shared secret value that is consistently checked throughout the transmission. Once authentication is established, the transmitter encrypts the data and sends it to the receiver for decryption.

Digital Connection: What is HDCP?
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.

Digital Content Protection, LLC Home Page
This organization licenses technologies for protecting commercial entertainment content.

HDCP: What It Is and How To Use It
April 2002 article from EDN Access gives a comprehensive explanation of HDCP, including diagrams and the mathematical calculation used to encrypt the digital data.

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