DMCA Blasted as Anti-Competitive, Ineffective

WASHINGTON — The Digital Millenium Copyright Act is under attack by a U.S.-based think tank that says the federal law reduces options for consumers and scales back competion for media companies.

The Cato Institute, in a report entitled “Circumventing Competition: The Perverse Consequences of the DMCA,” said that the copyright industry is exerting increasing control over playback devices, cable media offerings and Internet streaming.

The DMCA was introduced in 1998 essentially to remove the courts from the role of fashioning balanced remedies for the copyright challenges created by new technologies with an outright ban on technology capable of circumventing DRM. After nearly a decade on the books, however, it’s hard to find any evidence that the DMCA has reduced piracy.

The Cato Institute slammed federal legislators with instituting laws that aren’t feasible.

“In passing the DMCA, Congress short-circuited that evolutionary process. It threw out the accumulated wisdom of legal precedent and replaced it with a rigid and sweeping anti-circumvention rule,” the report said.

Specifically, the think tank draws the conclusion that the DMCA is anti-competitive.

“It gives copyright holders and the technology companies that distribute their content the legal power to create closed technology platforms and exclude competitors from interoperating with them," the report said. "Worst of all, DRM technologies are clumsy and ineffective. They inconvenience legitimate users but do little to stop pirates."

Further, the Cato Institute believes that a repeal of the DMCA would not lead to intellectual property anarchy.

“Prior to the DMCA’s enactment, the courts had already been developing a body of law that strikes a sensible balance between innovation and the protection of intellectual property,” the report says. “That body of law protected competition, consumer choice and the important principle of fair use without sacrificing the rights of copyright holders.”

“And because it focused on the actions of people rather than on the design of technologies, it gave the courts the flexibility they needed to adapt to rapid technological change.”

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Aubrey Kate, Charlotte Sins Star in New Transfixed Release

Aubrey Kate and Charlotte Sins star in the latest release from Transfixed, titled "Saved by the Bolster."

Connie Perignon, Angel Youngs Lead Latest From Jules Jordan

Connie Perignon and Angel Youngs star in the latest release from Jules Jordan.

TTS Opens New Los Angeles Testing Location

Talent Testing Service (TTS) has opened a new Hollywood location in Los Angeles.

Kasey Kei, Emma Rosie Topline Joey Silvera's 'Trans-Active 34'

Kasey Kei and Emma Rosie headline director Joey Silvera’s “Trans-Active 34” from Evil Angel.

Octavia Red, Rissa May Topline 'All Natural Lesbians' From Sweetheart Video

Newly crowned XMAs Girl/Girl Performer of the Year Octavia Red and Rissa May headline “All Natural Lesbians” from Mile High Media studio imprint Sweetheart Video.

Harlie Hotwife Makes Her WIFEY Debut

Creator Harlie Hotwife stars with her husband Travis and Prince Yahshua in the latest release from Vixen Media Group studio imprint WIFEY.

Mandii Rose Makes Her Elegant Angel Debut

Mandii Rose stars with Charles Dera in her Elegant Angel debut, titled “Good in the Hands.”

Rachel Rampage Stars in Latest From Kink.com

Rachel Rampage stars with Marcelo in the latest installment of Kink.com's "Divine Bitches" series.

Avery Lust, Chanel Chance Star in Latest From TGirls.Porn

Avery Lust and Chanel Chance star in the latest release from Grooby paysite TGirls.Porn, titled "The New Faces."

Eva Angelina Makes Her Tushy Debut

Eva Angelina has made her debut for Vixen Media Group studio imprint Tushy.

Show More