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

Ukrainian Legislators Revive Porn Decriminalization Push

The Verkhovna Rada, Ukraine’s parliament, is once again considering a bill that would decriminalize the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

Charlotte Sins on Porn, Power and Freedom

Charlotte Sins is cracking the whip. Or at least, she’s pretending to. Standing over a masked submissive on the set of her X3 cover shoot in North Hollywood, she’s a glam femdom vision in stiletto heels and retro ’50s pinup black hair. Leather whip draped over her bare shoulders, its black tip dangling suggestively between her long, tan legs, Sins moans softly.

Armani Black to Star in Latest From Bellesa Plus

Armani Black stars in the latest installment of the Bellesa Plus reality series “The Bellesa Challenge.”

Ofcom Fines XGroovy $986,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 700,000 pounds (about $986,000) against adult website XGroovy for failing to comply with provisions of the Online Safety Act.

Millie Morgan Leads Latest From MILFY

Millie Morgan stars with Sky Wonderland and Dan Damage in the latest release from Vixen Media Group (VMG) studio imprint MILFY, titled “Sexy MILF Teaches Younger Hottie to Take Control.”

Anissa Kate Fronts Latest From MILFY

Anissa Kate stars with Goldey in the latest release from Vixen Media Group (VMG) studio imprint MILFY.

Suki Sin Stars in Latest From Family Strokes

Suki Sin stars with Rion King in the latest release from the Family Strokes series "PervMom."

Digital Playground Premieres Ricky Greenwood's Action Feature 'The Tribunal'

Digital Playground has dropped “The Tribunal,” a futuristic, dystopian action film from multi-XMAs winner Ricky Greenwood.

Segpay Opens New Global Headquarters in Boca Raton

Segpay has selected Boca Raton for its new global headquarters.

X3 Euro All-Stars Paint Amsterdam Red in Billboard Campaign

The X3 Expo Euro All-Stars are making a splash on the vibrant streets of Amsterdam as the creator-first fan event prepares to make its debut on the continent.

Show More