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

Milena Ray Is Hustler's 'Cover Honey' for May

Milena Ray is the Cover Honey for the May issue of Hustler Magazine and appears in a 14-page centerfold spread shot by Davide Esposito.

Vanna Bardot, Chloe Foxxe Headline 'Dad's Lesbian Lover 4'

Two-time XMAs Female Performer of the Year Vanna Bardot and Chloe Foxxe topline the fourth volume of "Dad's Lesbian Lover," the latest release from Girlfriends Films.

Andylynn Payne, Sasha Tatcha Topline 'TS Girls Do It Best 3' From TransSensual

Andylynn Payne and Sasha Tatcha headline "TS Girls Do It Best 3," from Mile High Media studio imprint TransSensual.

Casey Calvert Wraps Production on Girlsway Feature 'Straight Girls'

Adult Time has announced that production has wrapped on the feature, "Straight Girls," directed by multi-XMAs winner Casey Calvert.

RocketGate Taps Joël Drapeau for Senior Account Executive Role

Payment processing company RocketGate has hired industry veteran Joël Drapeau as its new account executive for business development and client relations.

VR Reloaded: Inside the Next Era of Immersive Adult Entertainment

For years, virtual reality in adult entertainment hovered somewhere between “quirky novelty” and “exciting promise of things to come.” While the technology hinted at a radically different way to experience erotic media, early experiments often required bulky headsets, complicated downloads, and production techniques that weren’t yet quite up to the task.

On the Set: Seth Gamble, Wicked Serve Up 'Sweet Juggz of Justice'

It’s Easter Sunday, and there’s a rainbow shining at Tranquility Canyon Movie Ranch in Santa Clarita, California. Only this one isn’t in the sky. It’s on the ground and made up of four powerhouse performers, Angel Youngs, Octavia Red, Rissa May, and Vanna Bardot, dressed in vivid, artfully styled color on the set of Seth Gamble’s new Wicked Pictures feature, “Sweet Juggz of Justice.”

Violet Voss Makes Her Blacked Raw Debut

Violet Voss has made her debut for Vixen Media Group studio imprint Blacked Raw, alongside multi-XMAs winner Isiah Maxwell.

Pineapple Support Names Ocean Hanx Brand Ambassador

Pineapple Support has named creator Ocean Hanx as its newest brand ambassador.

Penny Barber, Nina Nova Star in Latest From Girlsway

2025 XMAs MILF Performer of the Year Penny Barber stars with Nina Nova in the latest release from Girlsway series "Mommy's Girl," titled "A Bit of a Stretch."

Show More