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I know it's completely off-topic, but why on earth should we need encryption between the STB and the TV? How does this benefit the customer?
The movie companies are so paranoid it's untrue.
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The reason is that the output from HDMI is a digital data stream and in theory there is nothing stopping you from connecting it to a PC or HD-DVD recorder and making perfect HD copies of films etc.
What HDCP does is to 'interogate' what it is being attached to. In the case of a TV then it would report back what it was and the circuitry in the STB would allow the HDMI connector to pass the High Def data stream. If on the other hand HDCP didn't like the replies it was getting then it could either refuse to output a signal at all or 'downgrade' it to SD