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

UPDATED: Court Approves Class Action in Labor Claims Against VMG

A U.S. district court has granted class certification in a civil lawsuit filed against Vixen Media Group (VMG) by retired performer Kenzie Anne, making it possible for additional performers to join in a class action against the company.

Pervz Drops Latest Installment of 'Polar Opposites'

Pervz has debuted the latest installment of the Reptyle cross-site release "Polar Opposites," starring McKenzie Mae, Emma Rosie, Demi Hawks, Coco Lovelock, and Danny Mountain.

Brazil Invites Public Input on Guidelines for New Digital Law

Brazil’s National Data Protection Authority (ANPD) is soliciting public comments to help improve interpretation and application of the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Jasmine Sherni, Blake Blossom Headline 'Dirty Talk' From Dorcel

Jasmine Sherni and Blake Blossom star in "Dirty Talk," the latest feature from Dorcel.

Scarlett Alexis, Vince Karter Front Latest From Bellesa Plus

Scarlett Alexis and three-time XMAs Male Performer of the Year Vince Karter star in the latest release from Bellesa Plus, titled “Obedience.”

Aleksa Mink Stars in Latest From HardX

Aleksa Mink stars with Isaiah Maxwell in the latest release from XEmpire studio brand HardX.

X3 Expo Unveils Euro All-Stars for Inaugural Amsterdam Edition

X3 Expo, Hollywood's premier adult entertainment expo, makes its European debut at Passenger Terminal Amsterdam Sept. 11-12, bringing together fans, creators, and industry insiders for the Continent’s largest assembly of adult entertainment stars, alongside a dazzling lineup of attractions spotlighting the cutting edge of modern media and pleasure tech.

2026 Pornhub Awards Nominees Announced

The list of nominees has been revealed for the eighth annual Pornhub Awards, which will be held May 27 in Los Angeles.

AEBN Publishes Popular Searches by Country for February, March

AEBN has released the list of popular searches from its straight and gay theaters, by country, for February and March.

Andi Avalon, Madelyn May Front Latest From New Sensations

Andi Avalon and Madelyn May star in the latest release from New Sensations.

Show More