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Circuit City Ripping DVDs for Users 467

Grooves writes "Circuit City is offering a DVD transfer service that's sure to enrage the MPAA. For $10 for 1 DVD or $30 for 5, Circuit City will violate the DMCA and rip commercial DVDs for users to put on their mobile players. From the article: 'This should be a viable market. Software and services are losing out to draconian digital rights management philosophies and anti-consumer technologies aimed at increasing revenues stemming from double-dipping--what I call the industry's penchant for charging twice for the same thing.' They note that fair use backups of DVDs have not been tested in court because all of the attention is focused on the circumvention software itself." Update: 08/04 22:40 GMT by Z : Acererak writes "Red Herring reports that Circuit City isn't offering any DVD-to-DVD copying scheme. The Slashdotted sign was an isolated screwup."
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Circuit City Ripping DVDs for Users

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  • Good for them (Score:4, Interesting)

    by MonkeyPaw ( 8286 ) on Friday August 04, 2006 @11:52AM (#15846859) Homepage
    I don't care much for Circuit City, but I'm glad they're taking this on. It's going to take companies like this to change the mindset (god knows no one wants to listen to "the little guys")
  • by hsmith ( 818216 ) on Friday August 04, 2006 @11:52AM (#15846862)
    As the content pushers (Circuit City, Best Buy, Walmart) try to go into these new arenas to sell content. What happens if WalMart goes to the RIAA and MPAA and says "we want to be able to sell the content however we want." Will /. cheer then as they push their weight around to shake up the *IAA monopolies?
  • Quote from clerks... (Score:4, Interesting)

    by Lord_Slepnir ( 585350 ) on Friday August 04, 2006 @11:56AM (#15846898) Journal
    "This is one of the ballsiest moves I've ever been privy to"

    Does anyone have the numbers on whether or not circuit city can afford to stand its legal ground against the MPAA? I imagine they'll probally settle out of court such that Circuit City can make the copies, provided that they include the same copy-protection stuff on the copied DVD as was on the original. The stakes that Circuit City and the MPAA are gambling are frighteningly high, as they risk setting a legal precident that says that you can't bypass copy protection for your own fair-use rights. On the other hand, a precident the other way would be a deathknell to a lot of the provision of the DMCA.

  • Yes we will (Score:3, Interesting)

    by Mustang Matt ( 133426 ) on Friday August 04, 2006 @11:58AM (#15846911)
    Because two 10,000 lb gorillas fighting is entertainment at the very least.
    If they kill each other all the better.
  • by morgan_greywolf ( 835522 ) on Friday August 04, 2006 @12:01PM (#15846929) Homepage Journal
    Nope.

    Step 1: Rip DVDs, bring in lots of income
    Step 2: Get sued by MPAA/Jack Valenti/Sony Pictures/Disney/somebody.
    Step 3: Pay lawyers
    Step 4: Get lots and lots of FREE publicity, building public empathy and support.
    Step 5: ????
    Step 6: Profit!

  • Re:good to see.. (Score:5, Interesting)

    by Anonymous Coward on Friday August 04, 2006 @12:03PM (#15846941)
    Hm, it WOULD be interesting to see Circuit City say "ok, ok, we'll quit ripping your stupid DVDs" then replace their entire DVD/CD section with iPod-loading kiosks. Leftover floorspace would go to selling ipods and various accessories. (Ok, ok, they could even throw in a PlaysForSure store and a few players). You could even float this past the shareholders by talking about "embracing the future of electronic delivery of goods".
  • by smashr ( 307484 ) on Friday August 04, 2006 @12:04PM (#15846950)
    In what way would this violate the DMCA?

    Since Circuit City has the software and tools to do the copy and would presumably not be handing them out to customers the standard "providing tools to circumvent copyright" issue wouldn't apply. Since backups for play on another device are fair use and legal I don't see the issue.

    This is an interesting point. Does the DMCA specifically disallow the sale or distribution of tools that provide for a circumvention, or does it disallow the circumvention itself? If it is the former, then Circuit City is just providing a service that enables the fair use rights of the consumer.

    Now, if the act of circumvention itself is illegal, then CC is up a creek without a legal paddle.
  • by Suzumushi ( 907838 ) on Friday August 04, 2006 @12:07PM (#15846977)
    I may be wrong on this one, but perhaps Circuit City has purchased a license to the CSS keys, that would allow them to decrypt and re-encrypt DVD's without "circumventing" the copy protection...just a possibility.

    The average consumer can't afford the thousands of dollars it would cost to get one of those licenses, but Circuit City could...

    Oh, and yay for DVD Decrypter and DVD Shrink!!!

  • by PurifyYourMind ( 776223 ) on Friday August 04, 2006 @12:19PM (#15847063) Homepage
    Is it just me, or does it sound like CC is doing exactly that, double-dipping? If someone buys the DVD at CC and then pays *again* to rip the DVD...
  • by raitchison ( 734047 ) <robert@aitchison.org> on Friday August 04, 2006 @12:23PM (#15847092) Homepage Journal

    Ahh but Best Buy isn't nearly as good as it used to be, higher prices, smaller selection, worse return policies. I gave up on Best Buy a few years ago anow now use Circuit City almost exclusively for my local (what I don't buy online) needs. Their order-online > store-pickup program is fantastic and their prices alsmost always match those of Best Buy exactly.

  • by file-exists-p ( 681756 ) on Friday August 04, 2006 @12:29PM (#15847137)

    In fact, I am not sure I clearly understand the DMCA. If you play a DVD and shoot the tv with a camera, is that violating the DMCA ? If they legally have a CSS key to read dvds and just transfer them to another support, is that against the DMCA ? What does the DMCA precisely states ?

  • by PhoenixPath ( 895891 ) on Friday August 04, 2006 @12:50PM (#15847287)
    This has nothing to do with whether or not they own the product. CC is making money off of someone else's product without the permission of the copyight hodler, and without compensating them.

    This is not allowed under our current copyright laws without explicit permission from the copyright holder.

    Are current copyright laws f*cked up? You bet. Does that make it legal? Hell no.
  • Kinko's Rules (Score:4, Interesting)

    by Doc Ruby ( 173196 ) on Friday August 04, 2006 @12:58PM (#15847348) Homepage Journal
    "Copyright" is the right of a person to copy something. The copyrighted content does not have the copyright, the person does (or does not).

    The "Kinko's Rule" demonstrates how copyright is not transferable, even under fair use. Let's say I have a book I bought. My fair use includes the copyright to photocopy pages, an entire chapter, for my personal consumption. If I'm a teacher, that even includes giving copies of a chapter (though not the whole book) to, say, 30 people in a class I teach. I go to Kinko's; I walk up to a photocopier; I set it to 30 copies; I turn the pages through the chapter on the machine; I collect the 30 copies of the chapter; I pass them out to each person in my class. No problem - I have the copyright to use the book's content fairly that way.

    But if I take that book to the Kinko's service desk, ask the Kinko's employee (or even just another customer with extra time on their hands) to copy the book for an otherwise identical usage scenario, I'm not allowed. Because the employee does not have the copyright to fairly use that book for anything (except maybe reading it as borrowed by a "friend"), because they did not obtain any copyrights by buying the book. The fair use copyrights I have on the book I bought are not transferable to another person - they are not contained in the book I physically pass to the employee, they are contained in the transaction of buying (and thereby owning) the book.

    This rule is the same when I bring a CD or DVD to Kinko's. I could use their burner to copy them for myself. But not for distribution to other people, though fair use of audio and video recordings does allow me to lend a single copy to a "friend", though I'm not allowed to use my own copy while another copy is loaned out. The rule says I cannot leave my CD or DVD with someone else at Kinko's to copy for me. And of course that rule applies to Circuit City, too.

    So how is Circuit City ripping these DVDs for users? In the last five years, several small companies started up to rip CDs for people, violating the Kinko's Rule. They were all told (I heard the warnings personally) by lawyers and copyright owners/"enthusiasts" that they were breaking the law, that their income would be siezed whenever a copyright owner wanted to sue them. That's the main reason why we haven't been able to have our media ripped from the physical media that traps so much value out of play: the small companies that always innovate fast ("entrepreneurs") have been stopped by legal intimidation.

    Now Circuit City is doing it anyway. Will they be stopped by the Kinko's Rule, and kill the whole business for everyone, even those who have been getting away serving with the consumer demand "below the radar"? Or will they demonstrate (in court, perhaps) that the Kinko's Rule is out of business? Or will some kind of "big corporation" collusion between the RIAA/MPAA and Circuit City just leave them alone, while enforcing the Kinko's Rule on entrepreneurs, keeping them (us) from competing?
  • by Chikenistheman ( 992447 ) on Friday August 04, 2006 @01:12PM (#15847427)
    That's untrue, Circuit City isn't selling you the copy. They are only facilitating that which may be more difficult and illegal for you to do at home for the low low fee of $10. If I want to purchase a DVD and play it on my fancy Video IPod I can either goto illegal sites, download an illegal bit of software, and illegally copy my DVD to a format playable on my Video IPod; Or I could simply buy a DVD at Circuit City walk over to a counter pay an extra $10 and leave with two forms of the movie.
  • by jasonwc ( 939262 ) on Friday August 04, 2006 @01:25PM (#15847500)
    CleanFlicks lost not because they made a "backup copy" of the original copyrighted work but rather because they manipulated the copyrighted work to edit out "offensive content" without the permission of the copyright holder. This is legal in certain exceptional cases such as parodying a copyrighted work, but in this case, it was a clear violation of copyright law. Cleanflicks sold a modified version of a copyrighted work without the consent of the copyrighted holder, and their main purpose was commercial and not artistic, political etc.

    The legal argument against CleanFlicks and the resulting decision in favor of the movie industry focused more on the right of a artistic creator to see his/her work presented in its intended form, without manipulation by 3rd parties, and NOT an attack on the illegal distribution of movies.

    Here are some pertinent quotes from the Defendant:

      "Directors put their skill, craft and often years of hard work into the creation of a film," added Apted, whose own repertoire includes the 1999 James Bond adventure The World Is Not Enough and Gorillas in the Mist. "These films carry our name and reflect our reputations. So we have great passion about protecting our work...against unauthorized editing."

    And from the case itself:

      ""[Moviemakers'] objective...is to stop the infringement because of its irreparable injury to the creative artistic expression in the copyrighted movies," the judge wrote. "There is a public interest in providing such protection. Their business is illegitimate."

    The service that Circuit City is providing is not analogous to that of Cleanflicks. They're not selling a modified version of the movie, nor are they selling ANYTHING. Instead, they're charging for the SERVICE of ripping a movie into a format that's capable of being played in a mobile player. Because they are circumventing CSS, they are breaking the DMCA. Therefore, Circuit City is breaking the law, but for different reasons than that of decision in the Cleanflicks case.
  • by Ana10g ( 966013 ) on Friday August 04, 2006 @01:45PM (#15847646)
    What would be more interesting, is it still considered format shifting if they don't destroy the original copy of the work, but instead resell it at the same price (and, one would assume, rip it for the next guy), paying the royalties over and over again? In effect this just cuts down the supply chain logistics that Circuit City has to deal with, while it doesn't affect the bottom line of the royalties paid to the content producers.
  • by Anonymous Coward on Friday August 04, 2006 @01:46PM (#15847657)
    DVDs contain a single bit indicating to the player whether to enable analog copy-protection on the video output (in the same manner VHS tapes are protected, in both cases to prevent people from dubbing DVDs onto tapes). DVD Decrypter simply set the bit to off, which was technically a form of circumventing the copy-protection.

    Yes, but is Macrovision copy-prevention in meaning of the DMCA? Macrovision doesn't *prevent* copying, it allows low-quality copies to be made.

    Does your right to make a copy (if any) depend on the quality of the copy?
  • by raitchison ( 734047 ) <robert@aitchison.org> on Friday August 04, 2006 @01:56PM (#15847710) Homepage Journal
    I'll bite.

    The "reasonable use" is helping people transfer video from a DVD they own to a portable device. Sure the MPAA would like you to buy that movie again in DRM protected format for use on your portable device but how many people on the street are going to find that reasonable.
  • by TheRaven64 ( 641858 ) on Friday August 04, 2006 @02:02PM (#15847750) Journal
    CDs have a similar pair of bits, one saying whether the work is copyrighted, and one saying whether it is a copy. You are not allowed to make copies of copies of copyrighted CDs, and any compliant CD duplicator is required to respect these and set the copy bit on any copies it produces while preserving the copyright bit.

    I have not seen a single CD copying program since 1998 which actually does respect these (and that one had a command-line argument to allow you to ignore them). The Disk Utility bundled with OS X (and dd, for that matter) can be used to 'circumvent' this protection, which works exactly as the Macrovision scheme you described.

    As I remember from my reading of the DMCA, there is a key word; effective. You are prohibited from circumventing 'effective' copyright protection schemes. Setting a single bit, or putting a text file saying 'do not copy this' in the filesystem, is not effective and so is not protected under the DMCA.

  • Re:good to see.. (Score:4, Interesting)

    by smellsofbikes ( 890263 ) on Friday August 04, 2006 @02:03PM (#15847753) Journal
    >strike an arrangement to kick back to the MPAA

    That's too naked. What they're doing is illegal. They can't just pay someone off without making it blatantly clear that the DMCA is a tax-generating system for the MPAA et al. And, more basically, they can't just pay someone to break a law. US law doesn't (yet) work that way, even though we treat it as if it does. To the best of my knowledge, they're violating a federal law, which means it's a felony. (I may be wrong: this is just what I've been told.) Either the law goes or they do.

    Make no mistake: I think it's a cool idea and if publicized will make a lot of waves when people think "huh, gee, that makes sense: everyone should be able to do that." If it gets publicized before it gets shut down, it's very very bad press for the MPAA. But I don't believe that it will actually happen.
  • by smellsofbikes ( 890263 ) on Friday August 04, 2006 @02:09PM (#15847786) Journal
    >If it's legal for me to do something, why would it be illegal for me to pay someone to do something for me?

    Asbestos removal. You're free to rip out asbestos tiles, insulation, refractories, what have you, in your home, because it's your home and one assumes you'll be doing it once and then it'll be gone. However, you cannot legally hire a service to do it because there are OSHA laws about asbestos removal and companies are not allowed to let their employees have repeated exposure to asbestos-containing products. I know that's an edge case and not what you're talking about, but I've been told that it's actually illegal to write a contract for commercial asbestos removal (and I was told that by a company I called asking if they'd do it, so I figure they'd know.)
  • Re:countdown (Score:5, Interesting)

    by timeOday ( 582209 ) on Friday August 04, 2006 @02:27PM (#15847927)
    You act like Circuit City is just stupid to get sued. But if they see it as a business opportunity and think they have a case, the cost of settling the issue in court could be well justified. If Diamond Multimedia hadn't successfully defended a similar lawsuit [salon.com] from the musuic industry, we wouldn't have anything like the iPod today.
  • by PhoenixPath ( 895891 ) on Friday August 04, 2006 @03:07PM (#15848192)
    So, in your world, if I form a band, make music, and sell it, it's perfectly allright for some jackass to come in, copy my CD, and sell it without my permission?

    Because I won't let him *do* that, I'm a monopoly?

    Wow.

    How *does* a band or artist or actor make money in your world? Or should they all just starve?

  • by PhoenixPath ( 895891 ) on Friday August 04, 2006 @03:22PM (#15848276)
    There is nothing wrong when *you* do it. For *backup* purposes. Not for use in another device. *that* is transformative. That is illegal.

    It is *illegal* to transform *any* copyrighted work and resell it. It *is* legal to sell the original.

    The Copyright Act grants five rights to a copyright owner, which are described in more detail below.

            * the right to reproduce the copyrighted work;
            * the right to prepare derivative works based upon the work;
            * the right to distribute copies of the work to the public;
            * the right to perform the copyrighted work publicly; and
            * the right to display the copyrighted work publicly.

    The rights are not without limit, however, as they are specifically limited by "fair use" and several other specific limitations set forth in the Copyright Act


    Here's the clincher:

    a derivative work is

            a work based upon one or more preexisting works, such as a translation, musical arrangement, dramatization, fictionalization, motion picture version, sound recording, art reproduction, abridgment, condensation, or any other form in which a work may be recast, transformed, or adapted.


    What CC is doing is creating a derivative. Which, as stated above, is the *sole* and *exclusive* right of the copyright holder.

    Also, regarding fair use::

    four factors are to be considered in order to determine whether a specific action is to be considered a "fair use." These factors are as follows:

          1. the purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes;
          2. the nature of the copyrighted work;
          3. the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and
          4. the effect of the use upon the potential market for or value of the copyrighted work.


    Make special note of item #1. Note, it does *not* make any mention regarding 'personal' use.
  • Comment removed (Score:3, Interesting)

    by account_deleted ( 4530225 ) on Friday August 04, 2006 @03:38PM (#15848394)
    Comment removed based on user account deletion

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