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 © 2025 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

Kasey Kei Fronts 'Transsexual Hitchhikers 5' From GenderX

Kasey Kei stars alongside reigning XMAs Gay Performer of the Year Derek Kage in the fifth volume of GenderX Films' "Transsexual Hitchhikers," directed by Jim Powers.

Amirah Adara, Tiffany Tatum Star in Latest From MixedX

Amirah Adara and 2023 Euro XMAs Female Performer of the Year Tiffany Tatum star in the latest release from MixedX, titled “The Wrong Word.”

LorReign Performs 1st Gangbang for WIFEY

Content creator and former Colorado sheriff's deputy LorReign performs her first gangbang in the latest scene from Vixen Media Group (VMG) studio imprint WIFEY.

Richard Mann Drops 1st Evil Angel Showcase With Rebel Rhyder

Rebel Rhyder stars in Richard Mann’s first Evil Angel showcase, titled "A Day In The Life Of: Rebel Rhyder."

Amy Nosferatu Fronts Latest From TransAngels

Amy Nosferatu stars with OnlyMatt in the latest release from TransAngels, titled “It’s Giving No Thanks.”

Daphne Klyde Returns to Immoral Productions

Daphne Klyde stars in a new two-part scene from Immoral Productions alongside Charlie Dean and Matt Bird.

Erika Lust Reflects on Vanguard Legacy and the Right to Pleasure

Erika Lust has spent two decades defying assumptions about what porn can be. The Barcelona-based filmmaker and studio head has built a global reputation on a simple premise: that sex onscreen should feel human, ethical and emotionally resonant.

Ofcom Investigates More Sites in Wake of AV Traffic Shifts

U.K. media regulator Ofcom has launched investigations into 20 more adult sites as part of its age assurance enforcement program under the Online Safety Act.

Tiffani Time Featured in Latest From Kink.com

Tiffani Time stars with Pierce Paris in an '80s-themed scene titled “Let’s Get Physical.”

Connie Perignon Fronts Latest From Brazzers

Connie Perignon stars with Will Pounder in the latest release from Brazzers, titled "Angry Café Lay."

Show More