UL watermarking is as simple as what you have stated above, and it can be actually make ur disc go bonkers if its a pirate!. I will explain it in layman's terms. I will exploit the redundancies in a picture and store some unique data in it. This will be invisible to the user if its a genuine product. It all boils down to uniquely tagging each and every Disc out there.. So for example we both may have the same film on dvd, but urs will have a different code and mine will be different. Now during playback, every frame will consist of a watermark. The watermarks that are generated MUST require the disc code to function.. i.e its like a mating process. As that code is a hardware factor (unique ID), if I happen to copy ur disc onto mine, It wont play, as the key component required for gereating the watermarks will be absent ! This is the current state of the art research work that is going on.
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