Any of the major players could hack Fairplay in an afternoon (slight exaggeration), the same as Apple could hack WMA. The point is they won't because it's just not the done thing, which is why the guy will struggle to sell it. (IMHO).
Real have been doing the same thing for a few years now, save for an interruption when Apple mucked with the protocol in an episode of willy waving. The same risk goes with this new venture, Apple can muck with firmware again if they choose.