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

Yhivi Fronts New Brazzers Release

Yhivi stars with multi-XMA winners Mick Blue and Isiah Maxwell in a new release from Brazzers, titled "Immoral Yhivi."

Vixen Media Group Extends Exclusive Contract With Jason Luv

Vixen Media Group (VMG) has renewed its exclusive contract with Jason Luv.

Brazzers Premieres Limited Series 'Sleazy Rider'

Brazzers has released the first installment of its new limited series, "Sleazy Rider."

Sarah Arabic Stars in Latest From Brazzers

Sarah Arabic stars with Will Pounder in the latest release from Brazzers, titled “Shirtcocking for the Win.”

Evil Angel Debuts Pat Myne's 'Who Does It Better?'

Evil Angel has released director Pat Myne’s new title, “Who Does It Better?”

Virginia Becomes Latest State to Weigh 'Porn Tax'

The Virginia House of Delegates is considering a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Mandii Rose Makes Her Evil Angel Debut

Mandii Rose has made her debut for Evil Angel alongside multi-XMAs winner Mick Blue.

Elizabeth Skylar Launches Production Banner on VRPorn.com

Elizabeth Skylar has launched her own virtual reality production banner on VRPorn.com.

MsSexySaigon Returns to TeamSkeet

MsSexySaigon stars in the latest scene from TeamSkeet’s “Freeuse MILF” series.

Penny Barber, Rissa May Star in Latest From MILFY

Penny Barber and Rissa May star with Dan Damage in the latest release from Vixen Media Group studio imprint MILFY.

Show More