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MPAA Sues DVD Chip Manufacturers

WhatAmIDoingHere writes "The Motion Picture Association of America has sued two chip manufacturing companies for selling integrated circuits to manufacturers that produce non-approved DVD players."

34 of 624 comments (clear)

  1. Lawyers Profit! by mfh · · Score: 5, Interesting

    FTA: Sigma and MediaTek make chips to decode the Content Scramble System, or CSS, which is the copy-protection system used for DVDs. Their licenses require that they sell only to other CSS-licensed companies.

    Let me get this straight. The content scramble system can be disabled with chips sold to companies with licenses to distribute systems with copy-protection? I smell another SCO-styled lawsuit. When will people learn? These chips could be valuable in the development of technology to prevent copy theft, and even then, since these chips are only being sold to licensed distributors, I see that the MPAA, or whoever is in charge of these licenses, could have simply yanked the licenses instead of wasting precious court time and money... that is, unless, the MPAA knew damn well they didn't have a case for revoking these licenses, so they figured they had better make an example of these companies by suing them for lost revenue. It's almost parallel to a police department charging another department for sending drugs or illegal firearms to a third party for analysis. It's totally trumped up! IANAL, but I think with these kinds of cases going around the block, I would like to be one! Lawyers are the only ones who profit from these hyped up dramas!

    --
    The dangers of knowledge trigger emotional distress in human beings.
    1. Re:Lawyers Profit! by squiggleslash · · Score: 5, Informative
      which is the copy-protection system used for DVDs
      Probably worth noting that it's the access control mechanism (as defined by the DMCA), not copy protection system. It doesn't prevent anything from being copied.

      It does make it more difficult for people to produce region free DVD players though, because only authorized DVD players may access the DVD (legally bypass the ACM), and a DVD player will not be authorized if it's region free, at least in the US. (Yes, there are hacks for many DVD players, but they're not supposed to be there, and more importantly, if a DVD manufacturer advertised the feature they'd lose their license instantly.)

      It's all about price fixing in the end. And it's legal. Don't you just love it?

      --
      You are not alone. This is not normal. None of this is normal.
    2. Re:Lawyers Profit! by balls199 · · Score: 5, Interesting

      Actually, regional DVD's aren't about price fixing as much as it has to do with selling rights. With most U.S. independent films, the producer sells the right to distribute his film in the U.S. at a loss to a distributer like Sony, but keeps the rights to sell the movie internationally. The producer doesn't make any money from U.S. sales, but makes at least enough to pay for the film on foriegn distribution. Regional DVD's were most likely developed to keep the distributer from competing with the producer. Thus, if you buy a region free DVD player, you're stealing from the producer, not the big bad distributer everyone is complaining about. For more information check out the book "From Reel to Deal" by Don S-S Simens.

    3. Re:Lawyers Profit! by Your+Pal+Dave · · Score: 5, Funny
      Why? If you're going to sell at a loss, why sell at all?


      They plan to make it up in volume.
    4. Re:Lawyers Profit! by squiggleslash · · Score: 5, Insightful
      Actually, regional DVD's aren't about price fixing as much as it has to do with selling rights.
      Selling rights to what? Selling rights to walk around? Selling rights to watch TV? Selling rights to stand on top of a building and yell "I'm Rob Malda and I'm not going to take it any more!"?

      Or selling rights to be the exclusive distributor in a specific market with little or no recourse for customers who want DVDs in that market to shop elsewhere? In other words, selling rights to price fix?

      Regional DVD's were most likely developed to keep the distributer from competing with the producer.
      Well, few producers actually distribute, but in any case, does it matter who's not competing against who? If it's all down to contractual arrangements, how is it a different breach of contract for one distributor to issue region-free DVDs compared to, say, a distributor selling to outlets and advertising heavily in a region they're not supposed to be?

      It really boils down to one thing: distributors want to be able to monopolize a market rather than risk people comparing prices in some other market and importing craploads - either directly through the world wide web, or indirectly through grey-importers. And if it forces someone to buy the same DVD twice, both times at an uncompetitive price, when they move, then all the better.

      --
      You are not alone. This is not normal. None of this is normal.
    5. Re:Lawyers Profit! by Armchair+Dissident · · Score: 5, Insightful

      If the thinking behind the DVD region encoding is simply to prevent a producer selling DVD's in competition to a distributor, then I can only think that the distributors can't write contracts. If I were a distributor, and I wanted exclusive rights to distribute a film, I'd damn well say so in any contract, and I'd specify damages if that clause was broken. Then if the producer attempted to make another deal with another distributor in the same region, I'd sue.

      I'd suggest that distributors are, in fact, very good at writing contracts. One only needs to look at book deals to see this. I find it hard to believe that a film distributor is completely incapable of writing an exclusive distribution agreement into a contract and enforcing it, whereas the book publishing industry has no such problem.

      Thus if I buy a region-free DVD player (as I have) I fail to see how I have "stolen" anything from anybody. I certainly haven't stolen from the producer so long as I buy a copy of the film I watch; if the producer has a good contract, he still gets his royalty cheque. If the producer does not have a good contract, then the only person "stealing" anything from anybody is the big bad distributor.

      --

      The ways of gods are mysteriously indistinguishable from chance.
    6. Re:Lawyers Profit! by malfunct · · Score: 5, Informative
      Regional dvd's were developed so the movie industry could release the dvd in the US before they release the movie to theaters abroad. It also supports regional pricing so that they can better match the price to the demand in the area and not have to compete with themselves in other areas. Finally as you point out they can more easily divide distribution rights.

      That said it still pisses me off in general.

      --

      "You can now flame me, I am full of love,"

    7. Re:Lawyers Profit! by dirty · · Score: 5, Interesting

      Then they are entering into a bad business agreement. Explain how it's exactly wrong to import a DVD from Europe. I can drink imported beer, smoke imported cigarettes, wear imported clothes. Why not watch imported movies?

      --

      -matt
  2. It's OK by Mz6 · · Score: 5, Funny

    It's still pretty easy to make DVD player region-free. I mean, it's not illegal to modify your own hardware now is it? Is this where they are going now?

    --
    Hmmm.
    1. Re:It's OK by Izago909 · · Score: 5, Informative

      I mean, it's not illegal to modify your own hardware now is it?

      It depends on where you live.

    2. Re:It's OK by Smallpond · · Score: 5, Informative

      Bull...

      (b) ADDITIONAL VIOLATIONS. (1) No person shall manufacture, import, offer to the public, provide, or otherwise traffic in any technology, product, service, device, component, or part thereof, that (etc.)

      and

      (c) OTHER RIGHTS, ETC., NOT AFFECTED. (1) Nothing in this section shall affect rights, remedies, limitations, or defenses to copyright infringement, including fair use, under this title.

      Nothing about possessing or using technology that bypasses encryption. Its legal to have, use and modify, just not distribute. Kind of like the GPL.

  3. Just annoyances anyway... by garcia · · Score: 5, Insightful

    it said proved the two were selling microchips to companies, whose DVD players lack what the MPAA called "appropriate security features.

    Give me a break. All of their "security" features have been easily broken by widely known software/hardware out there. In fact the only thing that "security features" do is make the general public annoyed.

    Take for example the TV/VCR combo I use in my bedroom. I have no need for a huge TV in there as I have two larger TVs elsewhere in the house. I hooked up an old DVD player to it. The TV thinks that I am trying to copy DVD's and enables Macrovision. There is no way to disable the Macrovision (at least from what I can find on the net) for that DVD player.

    Thus I am stuck w/removing the macrovision using available software and reburning so I can enjoy the DVDs I have purchased.

    1. Re:Just annoyances anyway... by garcia · · Score: 5, Insightful

      . If someone wants to open something locked with a padlock, it's really *not that hard* for him to do so, either by picking or with some bolt cutters.

      Does the Security Locker Association of America sue Masterlock for having a lock that be opened with bolt cutters or a torch?

    2. Re:Just annoyances anyway... by Gannoc · · Score: 5, Funny

      I think your point was: you can use a pair of bolt cutters to get into your own shed you lost the key to. Just as you should be able to use a program to decrypt and remove the MacroVision bit from DVDs you own.

      Incorrect, commie.

      According to the RIAA, you should simply buy a new shed.

  4. Insane. Absolutely Insane. by scifience · · Score: 5, Insightful

    Are you saying that now we can, for example, sue Ford because they produced the car that was purchased by a drunken driver who killed someone?

    A book publisher can sue Xerox because one of their copy machines was purchased for the purpose of making illegal copies of books?

    A camera maker? Companies that make pens?

  5. looks like a Slashdot editor wrote this article by morton2002 · · Score: 5, Funny

    Oh dear god, how could a Reuters article make such a stupid mistake?

    "...which claims its members loose billions of dollars annually to copyright piracy".

    *Sigh*

  6. Absurdity and Orwellianism by FunWithHeadlines · · Score: 5, Insightful
    The headline of the article screams "Piracy" and there is this quote:

    "The MPAA said the suits against Sigma Designs Inc. and MediaTek Inc. followed testing that it said proved the two were selling microchips to companies, whose DVD players lack what the MPAA called "appropriate security features."

    What rubbish! If you want to be a "pirate" (and let's call it something else, please), you can copy a DVD any time you want. Just do a bit-by-bit copy, and voila! A copied DVD. These manufacturers do not enable theft in any way.

    And what's with all this Orwellian "piracy" anyway? Those manufacturers don't conform to the precise specs the industry wants, so off with their heads? How about what the consumer wants? Oh, right, we don't count.

    1. Re:Absurdity and Orwellianism by Scanline · · Score: 5, Informative

      What rubbish! If you want to be a "pirate" (and let's call it something else, please), you can copy a DVD any time you want. Just do a bit-by-bit copy, and voila! A copied DVD. These manufacturers do not enable theft in any way.

      I you're talking about copying to a DVD-R, a bit-by-bit copy would produce an unplayable DVD. The CSS key is pre-recorded and thus the copy can't be decrypted.

      --
      "But I'm still like a little kid, see?
      I just don't know when to quit."
      - Rei
  7. Everybody always remember by Anonymous Coward · · Score: 5, Funny

    Guns: Sacred and necessary

    Devices which inadvertently allow consumers to exercise fair use rights: Dangerous and damaging

  8. Where's this proof? by Launch · · Score: 5, Insightful

    "The MPAA, recognizing the damage the advent of digital file-sharing did to the music industry, has waged an aggressive campaign against movie piracy."

    I still haven't seen a single piece of documentation that can dirrectly link a damage to the music industry as a result (even in part) by file-sharing.

    --
    Your mammas flamebait.
  9. Sold to DVD Makers by SirLanse · · Score: 5, Interesting

    Who are these DVD makers and what models are they talking about. Pirating minds want to know.

    1. Re:Sold to DVD Makers by djohnsto · · Score: 5, Informative

      Zenith DVB318 and Momitsu V880. They both upscale DVD's to HD resolution and output the unencrypted result over analog component cables. The DVD consortium (and the content industry in general), state that everything must be either encrypted with HDCP (when using digital outputs like DVI or HDMI), or messed up with Macrovision. The only exception is for component outputs (where the Macrovision algorithm doesn't work), so they contractually limit the legal output resolution over component to 480p for DVD's.

      People who were early adopters of HDTV's (i.e. they ONLY have component inputs for HD, no DVI or HDMI) are pretty pissed about the whole situation.

      --
      Dan
  10. I have to agree by slashjames · · Score: 5, Insightful

    I read the article, and I have to agree this is probably a valid lawsuit. This is purely contract law, not copyrights or patents. The contract the manufacturers signed said they would not produce or sell devices that could be used for copying DVDs. The manufacturers didn't hold up their end of the deal. Yeah, it stinks, but that's the way it is.

  11. You mean we _haven't_ learned anything by rharder · · Score: 5, Insightful
    The MPAA, recognizing the damage the advent of digital file-sharing did to the music industry, has waged an aggressive campaign against movie piracy.

    In other words, "We didn't learn from the backlash against the recording industry, so we'll do it again. Only harder."

  12. Re:Insane. Absolutely Insane. by M.+Piedlourd · · Score: 5, Insightful

    How about suing tobacco companies for producing cigarettes that people choose to smoke, or gun manufacturers for making weapons that are used to commit crimes? Pretty crazy world, isn't it?

  13. No by Anonymous Coward · · Score: 5, Insightful

    "If the chipmakers violated their licenses, they have broken the law"

    No, they have not broken the law, they have violated the terms of a contractual agreement. If they had broken the law a government entity (fed/state/county/etc) would be filing the charges not a company.

  14. Bad journalism... yet again. by Attitude+Adjuster · · Score: 5, Insightful
    More examples of supposed journalists repeating as fact things that have not (AFAIK) been proven...

    The CSS license pact has aided the success of DVDs because it has provided protection against illegal copying to copyright owners of movies, television shows and other content sold on DVD.

    And DVDs would have been less successful if CSS didn't exist? There is proof of that?

    The MPAA, recognizing the damage the advent of digital file-sharing did to the music industry, has waged an aggressive campaign against movie piracy.

    Haven't we seen studies claiming that the record industry has not been damaged, e.g. that sales are only lower than the RIAA's flawed and over-optimistic projections? Even studies claiming that file sharing might have a positive impact on record sales?

    It seems to me that many journalists these days don't actually investigate or research anything, they just take industry or political press releases and report the spin as fact. Or am I too cynical?

  15. Bizzaroman World by Anonymous Coward · · Score: 5, Insightful

    We know litigation is the last gasp of industries with outdated models, why else would you actively want to sue the people you are in business with or YOUR CUSTOMERS?

    The meteor has crashed, the dinosaur is dying.

    Speaking with a family friend who is getting involved in indie film production, the big studios are banking more and more on the one profitable hit out of the ten movies produced and on DVD sales and rentals than ever. Neither of us go to the movies very often any more to see anything produced by a big studio (the last movie I saw was Eternal Sunshine... and before that? Lord of the Rings 3?). I'd just as soon keep my money and see student films or whatnot over repackaged fluff. It all makes it to HBO within a year anyway.

    This is one reason I think the studios are balking at going digital, for while it appears to slash their distribution costs, it also enables theatre owners to use the equivelent of an iTunes Music Store for their first-run movies.

    Sorry dinosaur, comet has hit. Why sue chip manufacturers? The only image your damaging is your own, makes fuck-all difference to any with either 1) a modicum of nerdibility or 2) anyone with a hobby that is of lower abstract cost than watching fabricated reality (meaning people flock to most benefit for least effort; if the MPAA continues alienative customers, customers will choose other form of entertainment and forget Hollywood ever existed).

    It's Darwiniaan (sp?): adapt or die. Lawsuits are not indications of adaptation.

  16. Piracy Isn't Just a Naval Term by Speare · · Score: 5, Informative

    [stock rant]

    The press rightly continues to use the word 'piracy' for illicit copying and distribution of original materials. Some think it's a new phenomenon, and hard to square with the traditional image of the Jolly Roger and swashbuckling robbers-at-sea. The use of the word 'piracy' as signifying an unauthorized copy of a manuscript is hundreds of years old, long before modern Copyright doctrine was developed. From http://www.ninch.org/forum/price.report.html:

    • There was very little trust in the print medium when it was first developed--it was seen as unstable and subject to piracy and fraudulent copying. Authenticity was hard to guarantee: indeed, the term "piracy" was first used by John Fell, Bishop of Oxford, to describe certain pernicious practices of early printers and booksellers. A "pirate" was someone who participated in the "unauthorized reprinting of a title recognized to belong to someone else." "Stationers" eventually emerged as the trusted practitioners who were placed in charge of various aspects of publishing--practices we would now recognize as printing, publishing, editing, and bookselling. Stationers worked out the conventional practices of making books, and thus made printing a viable economic enterprise with the elaborate complexity of producing a book eventually invisible to all but the practitioners in the trade.

    That's Dr. John Fell (1625-86), who was given the title of Bishop of Oxford in 1675.

    [/stock rant]

    Now, the word "theft" is the word I object. One cannot steal an idea, one cannot steal the text of a book, one cannot steal the image of a mouse. Even if it is copied and the copy is somehow proven to impact the sales payable to the original creator, it is not theft. The original creator is not denied the chance to continue to sell their creation. It is a crime to infringe the creator's rights of monopoly, but it is not "theft." Rightly, the courts have also recently been pointing out to the MPAA that their aggressive rhetoric is squarely outside the definitions of law.

    --
    [ .sig file not found ]
  17. I think this would make and interesting case by cmiller173 · · Score: 5, Interesting

    What if you modify the hardware in such a way that it does not facilitate copying but does get around other "access controls". The last I checked even the DMCA does not guarantee the movie studios the right to create these little geographic monopolies called "regions". The problem is that most of the hacks to make a DVD player region free also disables macrovision as well. If someone were to hack the firmware of a player to enable region free access but left the macrovision copy protection in place(as long as were at it lets also disable the crap that keeps you from skipping past the FBI warning, etc) I think a good argument could be made that you in fact have not violated the DMCA.

  18. Re:No it's not by abbamouse · · Score: 5, Interesting

    That part has never been tested in court. Actually, very little of the DMCA has been tested. If I recall, the only prosecution was that of Elcomsoft and they were acquitted. Would courts convict someone for giving a speech, writing a paper, or posting a mesage that informed people about how to bypass access controls? I suspect they wouldn't -- but until we know whether speech is considered a form of "trafficking" the chilling effect of the law will continue to be felt.

    --
    Make cheese not war 8:)
  19. A more accurate headline by Anonymous Coward · · Score: 5, Funny

    MPAA Sues DVD Chip Manufacturers For Making Things People Want To Buy

  20. Just like Ye Goode Olde Dayes by serutan · · Score: 5, Funny

    Thanks to Intellectual Property, the feudal system lives!

    Hunt thou not in the King's Forest, knave! Double not thy clicks, nor singly if for commerce they be. Scribe ye not the holy GIF format, nor the code of Linux employ within thine enterprise, lest ye suffer sorely in combat with the royal tort attorneys!

  21. Re:No it's not by Overzeetop · · Score: 5, Informative

    No, it's not.

    1) Modifications you make yourself are NOT illegal under the DMCA.

    2) Distributing those modifications (parts or instructions) IS illegal.

    3) Making your modifications does not relieve you of the burden of copyright law.

    How did you get modded +5 informative?

    --
    Is it just my observation, or are there way too many stupid people in the world?