Certicom has done extensive work in elliptic curve cryptography (ECC), and the patents in question build on this work. The patents have already been licensed by groups like the US National Security Agency, which paid $25 million back in 2003 for the right to use 26 Certicom patents, including the two in the Sony case. Now, Certicom wants Sony to pay up, claiming that encryption present in several key Sony technologies violates Certicom patents on "Strengthened public key protocol" and "Digital signatures on a Smartcard."

The biggest charge is that the encryption in AACS itself is infringing. The practical implications of this claim are huge; AACS is included in Sony's Blu-ray players, PlayStation 3, and Blu-ray and PS3 discs. Certicom says Sony needs to take out a license for all of these uses.

SOURCE

Also from the same source :
"In addition, the company claims that the Digital Transmission Content Protection (DTCP) scheme is also infringing, and it seeks damages for every Sony i.LINK (IEEE 1394) implementation that uses DTCP and every Sony product that uses DTCP-IP. This includes all VAIO computers with i.LINK ports along with a whole host of Sony TVs and a few DVD players; one home theater receiver is even on the list.

This certainly could be bad news for Sony. If there's one thing that the company doesn't want to see, it's a cost increase for PS3 manufacturing. But the bigger story is that Certicom has the potential to go after every product that uses AACS, including HD DVD and Blu-ray discs and drives from many of the deepest-pocketed companies in the business."

Patent trolls at work again. But 'tis a brave new world where the courts have become soured on frivolous patent claims.

Given the overly broad nature of a lot of patents issued, victory for Certicom is not assured.

Agreed. Victory for Certicom is not assured.

It takes a much more powerful entity (like a Microsoft or even a Sony) to be able to prevail in control over such overly broad patents.

I say, strip the AACS s__t off of the HD-DVDs and Blu-rays. Hackers are allready on the verge of beating the system, and they will attack the next generation after that.

Taking away my fair use rights to do what I want to do "making clips, backup copies, etc." will hurt not help the industry.

AACS could stand for: Access to Advanced Content Substandard instead of the "advanced acces content system".