-- DMCA is unconstitutional
If, as both Courts ruled, the Digital Millennium Copyright Act (DMCA) allows consumers to copy DVDs based on fair use grounds but denies the tools to do so, then the DMCA is unconstitutional as fair use rights are constitutionally mandated. Even New York Judge Richard Owen acknowledged at a March 15, 2004 hearing that if the DMCA effectively denies consumers the tools to exercise their fair use rights, then 321 has "a beauty there."
-- Both courts ignored Chamberlain
Both district court opinions are inconsistent with Chamberlain Group, Inc., v. Skylink, where another district court concluded that the DMCA did not prohibit the sale of a universal garage-door-opener remote control, even though the remote bypassed encryption. The Chamberlain Court upheld the garage owner's right to open his own garage door, and 321 similarly argues that lawful purchasers of DVDs have the inherent right to unlock their DVD's encryption to access the DVD's contents.
-- DMCA unlawfully extends copyright protection
The opinions also sanction the CSS-encryption scheme by the Studios even when public domain films and works of the U.S. Government are involved. In effect, the rulings deny consumers the tools to make digital copies of DVDs, thus preventing access to and copying of public domain films and government works, all in violation of the "limited times" provision of the Copyright Clause of the U.S. Constitution.
The next step in the Second Circuit case will be a hearing on a motion for stay on April 13. Thereafter, the Second Circuit will set a schedule for briefing and argument on the merits of the case. The Ninth Circuit motion for stay is ripe for ruling without a public hearing. The briefing schedule will begin with opening briefs on June 18. 321 Studios' legal filings are available in the press section of the company's Web site.