What is managed copy? Essentially, it's code for "limited backups," -- say two, or three -- that could be used as legitimate backups or possibly distributed to a friend, as in the VHS era. The thinking apparently is that it would spur greater adoption of the format, as well as movies.

Although the article doesn't note the specifics of the negotiations, I'm sure those provisions are being discussed. I'd also bet that Zune-like provisions are also being talked about: i.e., the ability to backup a movie to give to a friend, but to only let it play once or twice before forcing the viewer to buy his or her own copy. A post by Ars Technica notes that the HD DVD camp would make managed copy (if approved) backwards-compatible with existing discs, while the Blu-ray camp wouldn't.

We've got a call in with the AACS for comment.