I’ve been doing a lot of reading about the Matsch decision, as well as noting what other respected individuals say about it (see Gary Shapiro’s thoughts below). Another notable discussion I’ve been following is from Tim Lee, blogger at techliberation.com. He hits on several of the important doctrines that come into play in this decision, and why he thinks Judge Matsch decided incorrectly. This post about the digital first sale doctrine is good reading. Lee argues:
Conceptually, the stronger rationale for finding that such editing is legal is the first sale doctrine, which holds that once you’ve purchased a copy of a work, you have a right to do as you please with that copy, as long as you don’t make additional copies…Clean Flicks has already paid Hollywood full price for each copy of the movies it re-sells—what business is it of Hollywood’s if they alter the copy before selling it?
The problem is that the first sale doctrine only applies to the physical original copy. But with digital technologies, accessing and modifying content often requires copying it. You can’t modify a DVD—all you can do is burn a modified copy. That means that even if Clean Flicks’s business is analogous to actions that would have been perfectly legal with 20th Century technologies, that doesn’t mean it’s legal. What you’re buying when you buy a DVD is just a physical piece of plastic, not the right to own one copy of the movie stored in the disk. Such over-literalism, it seems to me, is a mistake that threatens to cause a lot of mischief as more and more of our culture is distributed in media where copying is an inseparable part of accessing.
Lee goes on to explain how this strict interpretation of the doctrine is basically following the letter of the law and not the spirit of the law. He concludes by saying:
It would be a good thing if Congress clarified the first sale doctrine to make it clear that it gives consumers the right to consume and modify the content they purchase in the format of their choice, not simply the right to do as they please with a physical piece of plastic.
Which begs the question…if Congress explicitly shielded ClearPlay from lawsuits such as this one, why would they not exclude similar companies who provide the same service, just in a different manner? Is it over a silly piece of plastic?