The world of consumer rights has just been dealt a major blow by a California court. 321 Studios, the manufacturers of the popular DVD X Copy software have been ordered to stop shipping/selling their product by weeks end (02/27/2004). For many, DVD X Copy was the first user-friendly means of backing up purchased DVD's, and as such, was subject to a great deal of scrutiny from the Motion Picture Association of America (MPAA). 321 Studios is poised to appeal the ruling which is laden with controversy... here is why...
The initial ruling was based on the MPAA's insistence that the DVD X Copy software was illegal because is violated elements of the DMCA (Digital Millennium Copyright Act). The DMCA has been the topic of heated debate ever since its inception in 1998. I have read the Act in its entirety and it is arguably one of the most ambiguous things I've ever absorbed. The MPAA's main argument concerns security encryption circumvention. Essentially, the DMCA says that any efforts to thwart/circumvent (crack) any form of encryption are illegal. This is a problem for DVD X Copy, because the software effectively dispenses with the CSS (Content Scrambling System) developed to encrypt retail DVD content, allowing users to then extract copyrighted material. It's not looking very good for 321 Studios is it?... well not so fast... there is more...
321's appeal will certainly focus on the DMCA's "fair use" clause. Unfortunately, the fair use clause is probably the most vague and ambiguous portion of the DMCA. The general interpretation is that it is "fair use" to allow customers to circumvent encryption to copy copyrighted works, so long as the intent is for personal use or investment protection. The idea is essentially this... I bought a DVD, and I want an extra copy in case something should happen to the original. I buy DVD X Copy, and I am able to create backups to protect my investment.
Of course the grey area here is the legality of marketing a product that enables consumers to break encryption for "fair use" purposes. There is also the MPAA's argument that the software exceeds the capacity of "fair use" because it is being used to mass-produce and distribute their copyrighted products.
In 321 Studios defense, they are acting in the best interest of the consumer, and in no way intentionally contributing to DVD piracy. Their software was conceived in the interest of 'fair use' and is employed as such by thousands of Americans. The illegality resides at the consumer level unfortunately. If I sit in my basement all night churning out copies of Spider-Man so that I can go sell them on eBay… well then I'm turning a copyrighted material into my own little profit center, and that is wrong. This is the story that the MPAA was successfully able to sell to the California court. The problem is that there is no data to back up the claim this shady business model is being pursued by a significant number of Americans… nor that any copies being generated are depleting legitimate DVD revenue... explain?... happy to...
The DVD format has been nothing but a gem to the movie industry. With superior quality video and a reasonable price DVD's have been flying off store shelves. In fact, the Blockbuster video rental chain is being forced to close down numerous locations and reorganize their business to emphasize the retail instead of the rental because customers are more likely to BUY DVD's, not rent them. The evidence of declining sales the RIAA used to peddle its case against song swappers, is simply not valid in the DVD model. DVD sales are not only on the rise, but accelerating each year as the price of DVD players hit rock bottom, and the DVD customer base grows by leaps and bounds. DVD copy software like DVD X Copy has done very little to damage the sale of DVD's in this country. The reality is that the DVD format is appealing enough to the consumer to warrant its reasonable price point. Bargain shoppers can find many of their favorite DVD's for $10 or less. That is cheaper than most audio CD's!!!
The DVD beast has swallowed American's whole and the MPAA is just after a little more than they deserve. Like the RIAA, the MPAA is a rich and powerful conglomerate. The difference is that the RIAA is attempting to extort money to make up for its own mistakes, and the MPAA simply wants to squeeze the consumer for a little more. Both major character flaws to be sure, but I'm still not sold on the whole 'attack the consumer' marketing strategy.
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Posted by: Olgunka-hb | Tuesday, December 09, 2008 at 01:46 PM