Court Rules That Bypassing Dongle Is Not a DMCA Violation

tcrown007 sends along an appeals court ruling that, for once, limits the reach of the Digital Millennium Copyright Act's anti-circumvention clause. "MGE UPS makes UPS systems and software that are protected by hardware dongles. After the dongles expired, GE bypassed the dongles and continued to use the software. MGE sued, won, and has now lost on GE's appeal. Directly from the court's ruling (PDF): "Merely bypassing a technological protection that restricts a user from viewing or using a work is insufficient to trigger the DMCA's anti-circumvention provision... The owner's technological measure must protect the copyrighted material against an infringement of a right that the Copyright Act protects, not from mere use or viewing.' Say what? I think I just saw a pig fly by."

Comments

The summary could be better

[stinerman]

[quote]MGE sued, won, and has now lost on GE's appeal.[/quote]

TFA:

[quote]A jury awarded MGE more than $4.6 million in damages for copyright infringement and misappropriation of trade secrets, but the trial judge dismissed its Digital Millennium Copyright Act claim. MGE appealed, arguing that its dongles barred the kind of access to its software that the Act is meant to prevent.[/quote]

MGE appealed the trial judge throwing out the DMCA claim. The appeals court confirmed the ruling. GE didn't appeal anything.

Before you get too excited...

[TubeSteak]

Conclusion. VI.
For the foregoing reasons, [1] we AFFIRM the district court's grant of
GE/PMI's Rule 50(a) motion dismissing MGE's DMCA claim. [2] We also AFFIRM
the district court's grant of a permanent injunction against GE/PMI's use of
MGE's software and trade secrets. [3] We REVERSE the district court's denial of
GE/PMI's Rule 50(a) motion on MGE's copyright infringement, unfair
competition, and misappropriation of trade secrets claims for MGE's failure to
prove damages under 17 U.S.C. 504(b) and Texas law, [4] and RENDER a takenothing
judgment for MGE.

GE/PMI already paid for what they've done (the Rule 50 motions) and the injunction effectively means they'll either have to setup a new support contract or replace the UPS systems.

Re:Does this apply to everything?

[ep32g79]

MAI Systems Corp. v. Peak Computer, Inc., 991 F.2d 511 (9th Cir. 1993)

and more recently

MDY Industries, LLC v. Blizzard Entertainment, Inc and Vivendi Games, Inc. No. 06-2555, 2008 U.S. Dist. LEXIS 53988, 2008 WL 2757357 (D. Ariz. Jul. 14, 2008)