It appears that the HD DVD format will be getting its own form of copy protection. New Medium Enterprises (NME) has announced that they've partnered with Optikey to provide a solution to protect content on HD-VMD discs. While the details are sketchy, Optikey reportedly uses a submicron three dimensional optical structure that can't be forged.
The Optikey/HD-VMD system architecture will prevent the unauthorized reproduction of protected content on HD-VMD discs or any system that has our proprietary technology. Optikey doesn't rely on digital encryption, however, it has been proven that when added to encryption systems as a pass/fail portal, it provides an unbreakable layer of protection for the digital domain. The submicron analog Optikey structures provide precise threshold measurements to be matched with either a reference structure or discrete optical signatures. The Optikey/HD-VMD system will be compatible with existing legacy formats.
NME and Optikey plan to hold a joint press conference at Media Tech on May 16th to elaborate on the technology. In the mean time, you can read more about the technology here.