Yep, been there, done that many, many times. I've a DVD copier that's grandfathered under a previous court decision. DVD's CSS (Content Scrambling System) encryption got "cracked." Same has happened to Blu-Ray. Hardly a speed bump to the technically literate which, as the content owners well know, is the point. Most people are that technically literate. On yon other hand, it only takes one expert who posts the resulting unencrypted work on the Internet. Game over.
The hilarious thing here is that this entire methodology, warts and all, is what's going to happen with legally mandated back-doors. What one can invent, someone can hack the crap out of. Just watch.