Maynard Consulting

Why bother with these cases?

Because the outcomes of these cases could help clear up the “fair use doctrine” for consumers, content producers and manufacturers.

It may also help establish some redeeming value to DMCA:

In its “circumvention” provisions, the DMCA prohibits the manufacturing or trafficking of products designed to circumvent measures that protect copyrighted titles.

Most fair-use-loving authorities will concede that DVD rippers that chuck the CSS schemes don’t pass muster with the DMCA.

“But is it circumvention if the manufacturer makes bit-for-bit copies of copyrighted DVDs? The big studios think it is. Under the auspices of the Motion Picture Association of America (MPAA), they sued RealNetworks for its RealDVD ripping software, claiming violations under the DMCA.

In the most recent decision, Judge Marilyn Hall Patel upheld her original preliminary injunction against Real, prohibiting the company from distributing RealDVD until the case concludes. The court concluded that Real violated both contract with the DVD CCA, as well as the DMCA provisions that prohibit the trafficking of anti-circumvention devices.”

For more information on what has transpired over the past 4 years in these cases, visit this link to Julie Jacobson’s article in CEPro.

To be sure, there are a handful of contributing causes for the downturn in packaged media sales.  In no particular order:

1. sluggish economy
2. mature product (DVD)
3. piracy
4. voluntary drop in price points

Number four is probably the least discussed.  But i’ve been LONG saying it’s a harmful practice.  Even the revenue sharing deals for large rental outlets is a poison pill.  But the short term boon was always enough to encourage people to turn a blind eye.

At the Independent Film & Television Alliance Production Conference, Bill Mechanic spoke directly on this very subject.  Who is Bill Mechanic?  What are his credentials?  Among other things, he was the CEO of Fox Filmed Entertainment and the head of Disney’s video division.

Here are a teaser of his comments: 

“I get asked a lot if the problems [of declining DVD sales] are systemic. My answer is: not necessarily. That we would reach a point of maturation in DVD is natural and logical, but too much of the downturn is completely self-imposed.

Like much of the bad decision making that has helped take a lot of the profit out of the business, the air was let out of the tires by the studios themselves. No top management of a studio really cared what was going on over the past few years other than was their budget being met.”

Read Marcy Magiera’s full article from Video Business magazine here.