Encryption Cracked on High-Def DVDs?

Reuters runs this piece today suggesting that the anti-copying code for Blu-ray and HD DVDs has been cracked. Gina Keating writes:

The vulnerability could pose a threat to movie studios looking for ways to boost revenue as sales of standard-format DVDs flatten. In 2005, U.S. DVD sales generated some $24 billion for the movie industry.

If the encryption code has been cracked, then any high-definition DVD released up to now can be illegally copied using the Muslix64 "key," according to technology experts.