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There should be a way in the Moto STB to verify the content should've been protected.
The loophole may be in your provider's network, not the Gefen box.
I sent some additional info to John Falcone of CNET - I'm hoping he can dig a little deeper than I can to find out what's going on. Feel free to go for it as well - I emailed you a Gefen contact.
PS Notice the HD DVD and Blu-ray logos on the box? Hmmm... We didn't test HDMI recording from those sources, but perhaps we will.
I've heard you can connect a USB device to move or copy recordings from the hard drive of this box because the resulting files are in fact unprotected. Does this sound correct?
By the way, this is another good step in the right direction. I won't be able to use this device because of cost and the fact I already have a more-than-capable HTPC, but I'm excited about this type of HD recording capability - sort of similar technology as the coming-soon Hauppauge HD-PVR device.
By the way, it's more than similar technology - it's the same company. The Gefen DVR is using an Ambarella chip (see the pic above) like the upcoming Hauppauge device (and some high def video cameras). Though at least two other companies are producing mainstream chips for encoding HD on the fly, including the one we're using at work in the upcoming Slingbox PRO HD.
A standalone PVR solution that isn't source dependent (Tivo needs cable) is an important step, however Gefen (like most companies) gets it half right. No ethernet, no USB (although Newertech's Drive Adapter might be an option. What's the deal with 2 HDMI inputs (dual-tuner) and only HDMI out?
Update:
Google Checkout just charged my card for the PopcornHour
Gee, thanks Dave! ;-)
They still haven't explained how they're compliant with HDCP which explicitly states NO recording (my main point) other than temporary buffer, though I spelled out my hunch above.
By the way, it's purely an academic question on my part. I say we toss HDCP entirely.
3.1 No Copies. A Presentation Device shall not make any copies of Decrypted HDCP Content for any purpose, except for such temporary buffers as are permitted under Section 3.2.
and...
Decrypted HDCP Content may be temporarily buffered in a Presentation Device to enable and perform the Presentation Function, image processing function (e.g., picture-in-picture display, image overlay, image enhancement and brightness adjustment) or "freeze frame" of a single frame of Audiovisual Content, provided that such buffer shall not persist for more time than is necessary to perform such function.