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

Falcon/NakedSword Turns the Page With FalconINK Publishing Launch

Your local bookstore may not be the first place you’d expect to take in the latest Falcon/NakedSword release, but that could soon change as the gay adult film studio turns the page with FalconINK, a full-service publishing venture offering original fiction in print, e-book and audiobook formats.

ChatGains Joins Pineapple Support as Partner-Level Sponsor

ChatGains has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Private Releases 2nd Volume of 'Horny Women: Mid-Life Crisis'

Private has released the second volume of “Horny Women: Mid-Life Crisis,” directed by Xavi Rocka.

Charlie Forde, Mickey Mod & Derek Kage Star in 'A Surprise for Charlie' From Dorcel

Charlie Forde stars with Mickey Mod and multi-XMAs winner Derek Kage in “A Surprise for Charlie,” from Dorcel.

VMG Celebrates 10th Anniversary of 'Vixen' Imprint

Vixen Media Group (VMG) is marking the 10th anniversary of its flagship studio imprint, Vixen.

Gal Ritchie, Rissa May Lead Latest From Bellesa Plus

Gal Ritchie and Rissa May star in the new release from Bellesa Plus, titled “Double-Booked.”

Ivy Ireland Toplines Vince Karter's 'Back to Dark'

Ivy Ireland headlines reigning and three-time XMAs Male Performer of the Year Vince Karter’s latest Evil Angel directorial, “Back to Dark.”

Jazmin Black Performs 1st All-Girl Scene in Her Girlsway Debut

Jazmin Black performs her first all-girl scene in her Girlsway debut, alongside Ella Reese and Jewelz Blu, in the studio’s latest release, “Throuple’s Counseling.”

Richard Mann Drops New Evil Angel Scene With Daisy Stone, Alexis James

Daisy Stone and Alexis James star in an Evil Angel scene alongside director/performer Richard Mann.

Abella Danger Serves Glamour and Gab at Live 'Danger She Spoke' Premiere

Multi-XMA-winning performer Abella Danger slipped into a sexy new role Thursday night, making her talk show host debut with "The Abella Show: Danger She Spoke," a new show and podcast featuring revealing conversations with fellow performers and industry personalities.

Show More