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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."

32 of 266 comments (clear)

  1. If this precedent holds... by JoshuaZ · · Score: 5, Insightful

    If this precedent holds we may be in very good shape. The obvious generalization is to allowing such circumvention for fair use. If that occurs, then most of the problems with this legislation go out the window.

    1. Re:If this precedent holds... by arivanov · · Score: 5, Insightful

      All that the precedent does is that it sends a warning to people to stop frivolously mixing in DMCA into what should be covered by contract law. The dongle is a mere enforcer of the contract so unless someone at MGE was very very daft GE would be in violation of a contract.

      So while the first impression is that a pig has taken off, a more close inspection is showing that it is continuing on a ballistic trajectory after someone gave it some initial thrust. Not really flying.

      --
      Baker's Law: Misery no longer loves company. Nowadays it insists on it
      http://www.sigsegv.cx/
    2. Re:If this precedent holds... by Splab · · Score: 5, Funny

      We wont know if the pig is flying until it continuesly fails to hit the ground.

    3. Re:If this precedent holds... by sangreal66 · · Score: 3, Insightful

      I think as a whole it is a bad ruling.

      The part where he ruled circumventing a Dongle to use software you are legally entitled to use is not illegal is good.

      But, GE was illegally using software which it did not have the rights to use with of without the Dongle, which the judge said is OK. This part of his ruling is bad.

      The judge did not say it was okay, only that MGE failed to provide sufficient proof of damages (they tried to claim damages against the total revenue of the division and not just revenue related to servicing MGE UPS products)

    4. Re:If this precedent holds... by Kristian+T. · · Score: 4, Insightful

      Correct me if I'm wrong, but I think GE still have to pay for violating the copyright/contract. The DMCA claim got thrown out because a dongle is a use prevention rather than a copy prevention device. The software itself was probably copied without circumventing anything. MGE are probably saying: "Oh what the hell it was worth a shot" regarding the DMCA claim, but it was not the core of their case. Regarding precedent, ther's not much in it for Joe average with his DVD collection.

      --
      Run with the lemmings, and you'll get your feet wet.
    5. Re:If this precedent holds... by Anonymous Coward · · Score: 3, Funny

      Even if it never hits the ground it could still be orbiting, and that's not quite the same thing as flying either.

    6. Re:If this precedent holds... by PRMan · · Score: 5, Insightful

      I think this quote is a huge precedent...

      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.

      It means everything for Joe Average's DVD collection. He should have no problem putting it on a home server or a laptop, for instance, because he is not violating the Copyright Act by copying it for his own viewing/use.

      --
      Peter predicted that you would "deliberately forget" creation 2000 years ago...
    7. Re:If this precedent holds... by sconeu · · Score: 4, Interesting

      Disclaimer: I am not a lawyer, nor do I play on on TV.

      If the court ruled that a dongle is an anti-use device, rather than an anti-copying device, it seems to me that DeCSS might get cleared the same way.

      Any legal types out there want to comment

      --
      General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
    8. Re:If this precedent holds... by v1 · · Score: 5, Insightful

      I think in principle the DMCA is merely another charge to be tacked on when a crime (copyright violation) has already occurred. Sort of how you can get a heavier charge if you're near a school, use a firearm, are a felon, etc. In this case, if you not only violated copyright, but went well out of your way to do it by "circumventing a protection method". (makes it harder to claim accidental infringement)

      But historically it's been getting used as the primary law broken, which was not what it was originally intended for. That's like being charged with being in a school zone, without any proof of your having been speeding. "So would you like to settle with us for having been in the school zone, or do you want to get drug through court to prove your innocence on speeding?"

      The unfortunate part is that the law has technically been getting interpreted correctly as written, because it's written backwards in the first place. This judge that overturned on appeal probably interpreted the law for what it was supposed to be, not what it is. Normally I'm against this, but in this case true justice actually prevailed over book justice. As such I'm not sure whether to support this or not. It sets a bad example of how the legal system is supposed to work - that it has to malfunction for fair justice to prevail. I'd be a lot happier seeing the law getting fixed than getting end-run-around. Mainly because this is likely to be an isolated incident.

      The entire idea that someone can be charged with circumvention without being charged with copyright violation is just plain backward.

      --
      I work for the Department of Redundancy Department.
    9. Re:If this precedent holds... by Pharmboy · · Score: 5, Interesting

      It doesn't matter if the DVD says "no copying" if he is making copies that qualify as "fair use", which would take precedence. DMCA isn't about copying anyway, it is about bypassing security encryption. The judge appears to be saying "yes, they used the software illegally and are subject to fine, but using a crack to get around a dongle is not a DMCA violation by itself.".

      In otherwords, if you copy your DVD using any method, then they can still sue you for infringement but is likely not a DMCA violation if you are doing so simply to USE the DVD (fair use). If you did it to make copies to sell, that might be a different case. In short, if you are breaking encryption for your applications that qualify under fair use, thus perfectly legal (make a personal backup copy of a disk you already own, or to create a critique, to parody but not satire, for education, etc.) then there is a good chance that you won't be found to be in violation of the DMCA. Keep in mind, IANAL and even being legally in the right can put you in the poorhouse defending yourself here in the good old USA.

      --
      Tequila: It's not just for breakfast anymore!
    10. Re:If this precedent holds... by GNUALMAFUERTE · · Score: 3, Funny

      Damn. If only there was some kind of slashdot user who was some kind of legal advisor from some big county in the US.

      --
      WTF am I doing replying to an AC at 5 A.M on a Friday night?
    11. Re:If this precedent holds... by JohnFen · · Score: 4, Insightful

      My understanding is that a single copy for archival purposes is allowed.

      There is no strict number of copies allowed. However, it's also not true to say that any time you copy a DVD for any purpose it's a copyright violation. There are many circumstances under which it's not, and backups have generally been held to be one of them. Having a large number of backup copies might be taken as evidence that your purpose was something other than backing the DVD up, though.

      Also, the backups and the original must be treated as an indivisible unit. I.e., if you lend/sell/give the original (or any backup), then all other copies must go along as well.

  2. Wrong law to try and apply by Derekloffin · · Score: 4, Insightful

    While they did circumvent a defensive measure, they didn't make a copy of it. This is a matter of a contractual violation (assuming it is even that, I'm no lawyer so...). They paid for said software use for a period of time, and are going beyond that allowed period of time.

  3. The summary could be better by stinerman · · Score: 5, Informative

    [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.

  4. Before you get too excited... by TubeSteak · · Score: 3, Informative

    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.

    --
    [Fuck Beta]
    o0t!
  5. what about the "trafficking" prong? by l2718 · · Score: 4, Insightful

    Note that in this case GE is a large company which has within it the know-how to break copy protection. But even if GE was within their rights to circumvent the dongles, it would still be illegal for them to give the software solution to anyone else -- even if the present ruling stands and the recipient would be allowed to break the protections themselves.

    The real problem with the DMCA is that it criminalizes "trafficking" in anti-circumvention technology, even when both the provider and the recipient intend to make legal copies. So this ruling actually means basically nothing to individuals, and very little to companies (except for those that have in-house engineers capable of reinventing the wheel).

    At the bottom there's no way for the courts to fix the DMCA, since it's likely within Congress's powers to enact and it's not up to the courts to second-guess Congress about the policy choices – no matter how bad they were. The only way to fix the DMCA is for Congress to fix it.

  6. Re:Dream by tsa · · Score: 4, Interesting

    But does this ruling mean you're now allowed to circumvent the region code on DVDs so you can watch a DVD you bought in Europe in the US?

    --

    -- Cheers!

  7. Re:Does this apply to everything? by Pluvius · · Score: 4, Interesting

    No, backing up involves copying, and hence violates copyright.

    (a) Making of Additional Copy or Adaptation by Owner of Copy. — Notwithstanding the provisions of section 106, it is not an infringement for the owner of a copy of a computer program to make or authorize the making of another copy or adaptation of that computer program provided:

    (1) that such a new copy or adaptation is created as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other manner, or

    (2) that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that continued possession of the computer program should cease to be rightful.
    -- 17 U.S.C. 117

    For whatever reason, however, this only applies to computer programs. Presumably because other media weren't so easy to copy back when this part of the code was last modified in 1980.

    Rob

  8. Re:So are backups legal again? by Anonymous Coward · · Score: 3, Insightful

    If you have $782 Billion in assets, yes.

  9. Re:GE has deeper pockets by snikulin · · Score: 5, Insightful

    Shut up and enjoy the ride.

  10. Re:This opens a lot of doors by s0litaire · · Score: 5, Interesting

    Think it's more like Linux users will be able to use "open source" programs to play Blu-Ray disks legally.

    As it stands, it's illegal to rip/copy the Blu-Ray to another format for storing or viewing.

    However this ruling makes it legal to break the encryption just for the purposes of playback. (The intended function of the disk is for playback).

    But what do I know! IANAL!

    --
    Laters Sol "Have you found the secrets of the universe? Asked Zebade "I'm sure I left them here somewhere"
  11. Re:Does this apply to everything? by BoberFett · · Score: 3, Interesting

    I thought courts have already ruled that a program residing in memory is a copy, and therefore making that copy without the dongle (which implies limited consent to making said copy in memory) is a violation of copyright. I wouldn't be surprised to see this reversed.

  12. I read it differently... by earnest+murderer · · Score: 4, Insightful

    The judge seemed clear to me that the previous court's award for the continued use of the software was correct. But that the DMCA did not in itself entitle them to further damages.

    --
    Platform advocacy is like choosing a favorite severely developmentally disabled child.
  13. Re:Does this apply to everything? by sjames · · Score: 4, Interesting

    I wonder, given that DVD menus are effectively a simple bytecode run in an interpretor that results in the playing of video (possibly with additional video and audio overlays) that the DVD as a whole can be taken to be a computer program and it's essential associated data files.

  14. Re:This opens a lot of doors by sangreal66 · · Score: 4, Insightful
    I don't think so. The ruling specifically touches on this:

    Here, MGE has not shown that bypassing its dongle infringes a right protected by the Copyright Act. MGE’s dongle merely prevents initial access to the software. If no dongle is detected, the software program will not complete the start-up process. However, even if a dongle is present, it does not prevent the literal code or text of MGE’s copyrighted computer software from being freely read and copied once that access is obtained; there is no encryption or other form of protection on the software itself to prevent copyright violations. Because the dongle does not protect against copyright violations, the mere fact that the dongle itself is circumvented does not give rise to a circumvention violation within the meaning of the DMCA.

    IANAL, but I don't believe you can apply this same logic to DeCSS

  15. Re:This opens a lot of doors by XanC · · Score: 3, Insightful

    The trouble with that is that GE's "circumvention" allowed them to use the product, but had no bearing on their ability to copy the product.

    With DVDs/Blu-Rays, there's no distinction: the same "device" which allows you to "use" the product also allows you to copy it.

    Or am I wrong about the GE case?

  16. Re:This opens a lot of doors by icebraining · · Score: 4, Insightful

    According to the Wiki, you could already rip the DVDs. It was illegal to make and distribute the tools to rip such DVDs, though.

  17. Bypassing Dongles ~= Bypassing Media Checks by JakFrost · · Score: 4, Interesting

    This is the equivalent of buying a game or a program that requires a media check (e.g. "Insert DVD/CD-ROM to start the game") and then downloading a modified executable from GameCopyWorld.com to play your own game without the media check. Many people have been doing this for a long time and this ruling sets a precedent that effectively legitimizes the usage of these helpful executable.

    The problems with GCW is that a lot of times they include a full copy of the modified executable instead of just a small patcher or cracker program so they are still violating the copyright on the original executable code by distributing it without a license from the authors. The quick solution would be to download the patchers or crackers but since many of those are built using pre-made small assembly or C modular code (not shared libraries or DLLs) that has also be used by virus makers many of these legitimate pieces of modular code have been flagged by anti-virus companies as viruses just because they were used to make them. This is why your keygen, patcher, cracker executable will end up flagging anti-virus warnings immediately on download or usage or even months or years after you've successfully used them without getting an infection since their modules were flagged later. So GCW has a hard time with false-positive virus warnings and that's why they show that web page on download about their code being 100% clean and still allow download of full executables instead of just the patchers.

  18. Re:Does this apply to everything? by Man+On+Pink+Corner · · Score: 4, Insightful

    No, backing up involves copying, and hence violates copyright. It does mean though that things like VLC can get on with playing DVDs/Blurry disks.

    Note that copying a DVD is entirely trivial, and unencumbered by any protection at all. CSS is purely a "use-protection" mechanism (which is why it was always so violently wrong for the DMCA to apply to it -- copyright law was supposed to govern copying and distribution, not use.)

    So IMHO, not being AL, this ruling does appear to argue against the DMCA's ability to regulate DeCSS cracking. I expect it will be promptly overturned at the next level of appeals, because after all we can't allow copyright law to work for both the producer and consumer, can we?

  19. Re:Does this apply to everything? by ep32g79 · · Score: 3, Informative

    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)

  20. Re:Dream by mlts · · Score: 4, Interesting

    Even better, disable the UOPs so one doesn't need to sit through 30 minutes of ads before hitting the main menu? UOP was meant to just show the big FBI notice, not protect the ads.

  21. Re:Does this apply to everything? by GNUALMAFUERTE · · Score: 4, Insightful

    The problem here is that copyright is unnatural, and absolutely ridiculous. The only reason for copyright is controlling thought, and profiting excessively from created content. Their orwellian attempt at controlling information allows us to imagine all kinds of ridiculous circumstances.

    Example:

    If I legally play a movie at my house, but I happen to have a legal surveillance camera in there, and as part of the image my camera is recording, it records the surface of the TV, is that security footage illegal, does it constitute copyright infringement?

    If I legally download a movie,let's say, from itunes, and I don't actively share it, but I have my machine connected to the internet, and my hard drive is shared through samba, unsecured, to the whole internet. If someone connects to that samba share, and then copies the movie, is that my fault? Is it my duty too to protect the media I have from being copied? To what extent?

    If the photons that my LCD is emitting when I'm watching a move leave my house, am I broadcasting the movie, therefore, infringing copyright? Up to what point am I supposed to protect that movie from being copied? Is closing the curtains enough, or since energy can't be destroyed, only transformed, I am legally obliged to control the energy emanating from my LCD forever?

    If I legally store a legally downloaded movie on my hard drive, and then, due to a vulnerability in my operating system, that information is leaked, and every single human being on the world downloads a copy, is it my fault or the fault of the developers of my OS?

    Copyright is ridiculous and unnatural, and all attempts to control information are equally stupid.

    --
    WTF am I doing replying to an AC at 5 A.M on a Friday night?