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

Elegant Angel Debuts 'Hailey Rose Is Titwoman' Showcase

Multi-XMAs winner Hailey Rose takes on the role of "Titwoman" in the latest iteration of Elegant Angel's signature showcase series.

Jazmin Black Stars in Latest From Bellesa Plus

Jazmin Black stars with Nathan Bronson in the latest episode of the Bellesa Plus series “Blind Date.”

Ayla Makes Her WIFEY Debut

Ayla has made her debut for Vixen Media Group studio imprint WIFEY alongside her partner Eden and Jonathan Jordan.

Sophia Locke, Demi Hawks Lead 'Mommy's Girl' Crossover Finale

Reigning XMAs MILF Performer of the Year Sophia Locke stars with Demi Hawks in the final installment of Adult Time’s “Mommy’s Boy” and “Mommy’s Girl” two-part crossover event, titled “Her Pro-Domme Stepmom.”

Octavia Red Returns to Jules Jordan

XMAs winner Octavia Red stars with Manuel Ferrara in the latest scene from Jules Jordan Video.

Studio Vanniall Signs Exclusive Partnership Deal With PAYSITE

Studio Vanniall has signed an exclusive partnership deal with PAYSITE.

Jadynn Stone, Karla Lane & Savannah Rae Star in Latest From Brazzers

Jadynn Stone, Karla Lane, and Savannah Rae star with Lil D in the latest release from Brazzers, titled "Lesbian Polycule Cheats With Cock."

Jessi Rae Named Vixen's 1st Brand Ambassador

Vixen Media Group (VMG) has named Jessi Rae its first-ever brand ambassador.

Kenna James Leads 4th Installment of 'Equilibrium'

Kenna James stars in the fourth installment of Vixen Media Group studio imprint Deeper’s fantasy feature “Equilibrium.”

Kate Dalia Headlines Latest Volume of 'Catfished' From Sweet Sinner

Kate Dalia toplines the sixth volume of “Catfished,” the latest release from Mile High Media studio imprint Sweet Sinner.

Show More