Piracy of unencrypted digital cinema files is a major concern. The SMPTE DC28 Digital Cinema Committee has a Working Group devoted to encryption and encoding:
ftp://eng.smpte.org/pub/dc28-4_interim_report_v1.pdf
Kodak has also developed technology that can even be used to foil simple camcorder piracy:
Kodak Digital Cinema Watermarking
Kodak Digital Watermarking
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John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Research Labs, Building 69, Room 7525A
Rochester, New York, 14650-1922 USA
Tel: +1 585 477 5325 Cell: +1 585 781 4036 Fax: +1 585 722 7243
e-mail: john.pytlak@kodak.com
Web site: http://www.kodak.com/go/motion
quote:
The MPAA does have a Contact/Reward Program for information leading to the conviction of larger- scale movie pirates
I wonder what the size of these rewards are? I never hear anything about people making some extra cash turning these pirates in. Could one quit their present job and become a undercover bounty hunter for the MPAA?
The Palm Beach County (there's a red flag) "Crime Stoppers" program has this message: "You can remain anonymous, and you could collect a reward!" Okay, you can't have my name, number, or address as I would like to remain anonymous, so leave my reward in a paper bag in the third trashcan to the left of the sea-saw in the park. 
=TMP=