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 © 2025 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

Andie Anderson Makes Her MILFY Debut

Andie Anderson has made her debut for Vixen Media Group studio imprint MILFY, alongside Isiah Maxwell and Hollywood Cash.

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 in February and March.

Peachy Alice Fronts Latest From Immoral Productions

Peachy Alice stars in a new trilogy from Immoral Productions, alongside Charlie Dean, Matt Bird, and studio honcho “Porno Dan” Leal.

Jessi Rae Signs Exclusive Contract With Vixen Media Group

Vixen Media Group (VMG) has signed Jessi Rae to an exclusive contract.

BranditScan Launches 'Referral Rush' Promo

BranditScan has launched its Referral Rush promotion for creators.

Pure Taboo Debuts Bree Mills Thriller 'The Party's Over'

Hazel Moore stars with Liz Jordan and Hailey Rose in the latest thriller from Pure Taboo, titled “The Party’s Over.”

Athena Heart Stars in Latest From TeamSkeet

Athena Heart stars with Jason Sarcinelli, Axel Haze, and Nick Strokes in the latest release from TeamSkeet.

Violet Myers, Valentina Nappi Star in Latest From Brazzers

2025 XMAs Premium Social Creator of the Year Violet Myers stars with Valentina Nappi and Ricky Johnson in the latest release from Brazzers, titled “V and V Share a Big D.”

2025 AltStar Awards Nominees Announced

Nominations have been announced for the 2025 AltStar Awards, aka the AltPorn Awards, presented by Bad Dragon.

AI Erotic Storytelling Platform 'AIEroticSmut' Launches

AIEroticSmut.com, a DIY erotic storytelling platform, has officially launched.

Show More