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Fair Use vs. DMCA: 321 Studios Takes the First Swing


321 Studios isn't waiting around to become the next Elcomsoft.

The company has recently filed a complaint against the major movie studios seeking a declaratory judgement that its "DVD Copy plus" product does not violate the DMCA.

The complaint (PDF file) is a defensive measure prompted by the MPAA's public confirmation of its intent to prosecute 321 Studios for its violations of the DMCA.

Here are some excerpts from the complaint that I hand typed from the PDF file to help better explain the exact details of the situation.

This lawsuit involves the ability of a small Internet company to market and sell an instruction manual and bundled computer software that teaches legal owners of DVD movies to make legitimate backup copies of the contents of a DVD for their own personal use. 321 Studios' package, called "DVD Copy Plus," is an effective and easy-to-use method of transferring the digital video images from a DVD onto regular CD-ROMs, permitting the DVD owner to make backup copies of the DVD films... (Page 1, Line 25-Page 2 Line 2)

...This lawsuit presents important questions about the interpretation of the Digital Millennium Copyright Act and its interaction with United States copyright law and the First Amendment. The so-called "anti-circumvention" provisions of the DMCA have been widely criticized by legal scholars and computer industry experts. Because the potential reach of this new legal scheme is unclear, and because defendants claim 321 Studios violates this untested provision of copyright law, declaratory judgement by this Court is necessary to preserve the legitimate right of 321 Studios to market and sell DVD Copy Plus, and the legitimate rights of DVD owners to make backup archival copies of their own DVDs...(Page 2, Line 13-20)

...The problems with the DMCA stem from its vagueness, its interaction with other copyright laws, and its inconsistencies with the First Amendment protections on speech. The DMCA prohibits legitimate conduct including the fair use of copyrighted works permitted under the Copyright Act. (Page 9, Line 14-17)

Based on information and belief, representatives of the Motion Picture Association of America have asked the FBI to investigate 321 Studios' distribution of DVD Copy Plus and have stated their belief that 321 Studios' distribution of DVD Copy Plus and have stated their belief that 321 Studios has violated the 1998 Digital Millennium Copyright Act. The MPAA's desire to shut down the distribution of DVD Copy Plus, and its allegations that such activities and distribution violate the DMCA, are stated in a March 11, 2002 newspaper article distributed [by] the Gannett News Service. The newspaper article specifically referred to the website operated by 321 Studios offering the DVD Copy Plus product, "www.copymydvd.com." (Page 9, Line 19-26)

There's also a good CNET article by Lisa Bowman about the subject (where I first heard about it.)


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Comments (7)
Read More Entries by Lisa Rein.

7 Comments

legallm said:

Know your laws before you damn them
Before everyone rejects the MPAA's stance against 321, perhaps you should attempt to understand just exactly what it is that "Hollywood" is attempting to do. The MPAA did not sue 321 because they were upset about people making exact copies of copyrighted DVDs -- afterall, although that is illegal too, people have been making copies of VHS and audio tapes for years with the music and movie industries turning a blind eye.

The sudden concern is based on the encryption device (CSS) that the movie industry developed to protect the information on DVDs from being downloaded and compressed for rapid digital transmission. The CSS does NOT prevent you from burning duplicate copies of a DVD that you purchase at the store - when a duplicate copy is made, the CSS is transferred from the original onto the copy. So if the concern is the "freedom" of an owner to make use of an original DVD, the MPAA is not stopping you (again, this is still generally illegal if the material on the DVD is copyrighted).

The problem is that 321's software was NOT created to make duplicate copies (i.e with the CSS intact) but was intentionally designed to break through the encryption (essentially a "digital lock pick") -- which is a direct violation of the recently enacted Digital Millennium Copyright Act (DMCA). There is no reason for anyone to have access to change the format of the DVD, unless it is to download it and share the information illegally - just as is the common practice with illegal music file sharing.

If you want to debate the issues, know the questions. If you want to challenge the law, know where it stands.

anonymous2 said:

copyright laws bedamed
To hell with Hollywood. I have old vhs home movies I have downloaded to my PC and then copied those onto DVD's. Now I suppose Hollywood is going to tell me that's wrong? BS! According to the law then I am breaking it. Well too damned bad. The Federal government is taking enough of our rights away we don't need the left wingers in California doing the same. Keep it up hollywood. You piss enough people off and sooner or later your industry will suffer. That's a good thing!!!! Especially due to the kinds of movies you have turning out lately. Who wants to copy that crap anyway?

anonymous2 said:

DVD Copies
Unfortunately, by eliminating the need for backup copies and the sharing of said copies would violate the Fair Use Act which permits such said uses. If I photocopy a page out of an encyclopedia and let a friend take it from me for her research project then according to the MPAA I am violating the law. NOT SO! It is illegal if I charge for the copy, that is piracy (a word the MPAA seems to like to through around quite a bit). We need to draw a line right here people. If we allow these jerks in Follywood to continue to dictate what is legal use of copyright material it won't be long before you won't be allowed to play a CD at a party because it is "Public Exhibition". Let's stop the madness now and slap these bullies down once and for all.
-- Outraged at the Left Coast

anonymous2 said:

DVD Copies
if the dvd companies dont want you to be able to copy films then why not put their money were their mouths are and offer lifetime replacement on faulty disks or a cheap replacement say £1/2 to replace a damaged disk then they could argue that you should not be able to make backups.
and this would do away with so called backup copies being handed around.

anonymous2 said:

DVD copying
I have a massive DVD collection, about 30% are music videos/concerts. I should be able to copy tracks from various dvd's and create party compilation discs for use in my own home, just as what you would do with cd's.

anonymous2 said:

Don't Fight the MPAA, Fight 321 Studios!
It is very ironic that 321 Studios is suing movie studios when they are the ones who should, and in fact are being sued themselves, and I'm not even talking about the MPAA. I am very much a proponent of having the right to back up bought dvds, and in fact do this quite often, but 321 studios is hardly the appropriate champion for this cause.

321 studios has taken software which is completely free and released under the GPL licence and have not only violated GPL regulations by distributing the software without source code or credit to author, but they are charging money for it. This coupled with the blatant false advertising on their web site makes for one lucrative scam. In selling this software they are breaking numerous laws and ripping people off right and left.

The only reason this company is still in business is because the people who they are stealing from don't have enough money to sue them and the reason they don't have the money is because they release their software for free! How's that for Karma?

anonymous2 said:

DVD Copies
Yes I do believe people should be able to make copies of their DVD's. They are susceptible to damage the same as vinyl records, cassettes and of course the good old floppy disc. I don't believe it's fair to then ask us to buy another of the same title.

Phil - Perth Western Australia

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