Need one more trusted detail to know for sure.
O.K. I have read through this thread and there is a lot of arguing. This copyright is agreed to be an AUDIO WATERMARK. It has a specific signature, so no, it does not need the machine to be on the internet to compare audio, that is a completely different technology.
All this does is identify the Audio watermark exists, and once done, which one and checks the hardware device to ensure authorisiation.
So, as said many times, this effects theatre type releases... for sure, at this time.
So why cams, telecines, and R5... Because all of the above have the audio copied from a source that is NEVER intended to find its way onto any hardware other than professional devices, which can contain proper hardware identification strings. (Like the ps3 or BD players).
Cams: obvious that it contains audio from the theatrical release, as it is actually a film of the film.
TS: This is the exact same thing, but is a more direct copy of a professional theatrical release, done with skill and controlling variables, but the audio is once again theatrical release.
R5: You are right, piracy is HUGE in Russia and India, etc.. the is why we have R5's and why the video quality is so good. These are released in these contries ON DVD, even when we are still going into the theatre to see them. The Audio of an R5 is hard coded in the language it is released in, and there are no other audio options. So, to get an english R5, which can have a fantastic DVDrip video, still has to get its audio.. you guessed it... from a theatrical release, usually ripped from a good cam or TS.
DVD's released to the mass market do not contain this theatrical water mark, or store bought would not work in your PS3.
Sadly though, it is only a matter of time before even these have watermarks that can tell subtle differences in the audio and intended audio... but I personally believe this is not the case yet because other than downloads, I can't find any evidence of this yet.
If you read through the forums, people will say 'legitimate DVDrip or BDrip' but no one has said that they bought a dvd/BD and backed it up, and it did not play. No one knows the source for sure of what they download, so my question is:
Has ANYONE made a copy of a DVD or BD THEY ACTUALLY HAVE that has not played?
Now that would be a true problem.