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

Madison Wilde, Eva Long Topline Latest 'My Friend's Lesbian Daughter'

Madison Wilde and Eva Long headline the fifth volume of “My Friend's Lesbian Daughter,” the latest release from Girlfriends Films.

LoyalFans Announces 'Group Walkthrough' Online Event Series

LoyalFans has announced its new “Group Walkthrough” online event series for creators, taking place every Tuesday and Thursday.

Aleksa Mink Fronts Latest Release From TeamSkeet

Aleksa Mink stars with David Lee in the latest scene from TeamSkeet, titled “Concept: Big Titty Goth GF #3.”

Lex The Flamee Makes Her Adult Time Debut

Lex The Flamee makes her Adult Time debut opposite Ember Snow in the latest installment of the studio’s series "All-Girl Massage," titled "Promotional Support."

Bree Sky Officially Launches 'ThirstChat' Fan Platform

Creator and entrepreneur Bree Sky has debuted her new fan platform, ThirstChat.

Gypsy Rose, Linda Lan Headline Jonni Darkko's 'Load Sharing 4'

Gypsy Rose and Linda Lan topline multi-XMAs winner Jonni Darkko's “Load Sharing 4,” from Evil Angel.

Cherry Kiss, Ella Reese Star in Latest From Bellesa Plus

Multi XMAs-winner Cherry Kiss stars with Ella Reese in a new release from Bellesa Plus.

Ravyn Alexa, Jasmine Sherni Lead Latest From Brazzers

Ravyn Alexa and Jasmine Sherni star with Scott Nails in the latest release from Brazzers, titled "Hot Tomboy Gets the DILF."

Jade Venus, Cliff Jensen Star in Latest From TransSensual

Jade Venus and Cliff Jensen star in the latest release from Mile High Media studio imprint TransSensual, titled "Locked In."

Gender X Debuts Jim Powers' Limited Series 'Trans Realtors'

Gender X Films has debuted the first installment of director Jim Powers’ limited series "Trans Realtors."

Show More