Chinese Pirates Crack The Blu-Ray Disc

Last week in a raid of a Shenzen, China warehouse, Chinese officials discovered the first ever seen fake copies of high definition Blu-Ray movies.
The pirates are ripping high-def movies (cracking Blu-ray’s AACS and BD+ encryption in the process) and re-encoding them using AVCHD, which offers a 720p picture.
Because of the reduction in resolution, file sizes are smaller and can be burned to regular DVDs, but quality is still extremelly high.
More importantly, the fake Blu-Ray disks can be played in a Blu-Ray player and according to this guy, these disks have been floating around since July. A little slow on the reporting WSJ.
The going price for a fake Blu-Ray disc is around $1.25 compared to a standard DVD price of $0.80
The Motion Picture Association International is not thrilled.