[ql06] PROPERTY: DMCA suits get out of hand

  • From: Steve Kennedy <2srk@xxxxxxxxxxxxxxxx>
  • To: ql06@xxxxxxxxxxxxx
  • Date: Mon, 20 Oct 2003 23:40:44 -0400

As reported earlier this month by the CBC, a Princeton student noticed, 
while loading a music CD into his PC, that pressing the Shift key 
disables BMG's copy-protection software.  The CD can then be easily ripped.

Ah, basic compensation principles in contract law ought to take care of 
our nerdy hacker friend you might be thinking. Buddy read the EULA (ha, 
ha ha - who the hell reads those?!), clicked Yes, then started messing 
around with reverse engineering and all that. Let him chew on the 
"Hadley" rules...

Let's see... Software company says it lost $10 million since our friend 
breached contract and posted his info. Part 1 of "Hadley" says that in 
breach of contract the P. can recover losses that fairly and reasonably 
arise from the nature of the contract or losses that were supposed to 
have been contemplated by the parties at the time the contract was made. 
Part 2 says P. can recover losses that flow from his communication of 
special circumstances when D's knowledge of those special circumstances 
would reasonably allow him to realize that P. might suffer some 
extraordinary loss. QED cough up the $10 million.

But wait, this gets better... Did our hacker hero agree to the bound by 
the evil EULA contract?

Not really, he simply ignored it. Ordinarily, clicking on the "No" 
button under the EULA causes the CD to be ejected. Of course, clicking 
"Yes" means you agree to be bound by pages of legal handcuffs that make 
sure you spend the rest of your life doing workfare if you break the 
copy protection scheme. But in this case, the software protection was so 
shoddy you could ignore the EULA screen altogether and still access the 
music on the CD -- all without consenting to the EULA's contract clauses.

Now the software-maker is suing the student for publicizing his find on 
the 'net. We'll see if their lawyers are as crappy as their engineers.

Here's the link to the student's web site: 
http://www.cs.princeton.edu/~jhalderm/cd3/

By the way, did you know that pressing the Start key on the photocopiers 
in the law library allows you to disable the copy-protection on books? 
Oops,I better shut up, I can't afford a lawsuit right now.




Princeton Student Sued Over Paper on CD Copying
Thu October 9, 2003 06:07 PM ET
By Ben Berkowitz

LOS ANGELES (Reuters) - Three days after a Princeton graduate student 
posted a paper on his Web site detailing how to defeat the 
copy-protection software on a new music CD by pressing a single computer 
key, the maker of the software said on Thursday it would sue him.

In a statement, SunnComm Technologies Inc. said it would sue Alex 
Halderman over the paper, which said SunnComm's MediaMax CD-3 software 
could be blocked by holding down the "Shift" key on a computer keyboard 
as a CD using the software was inserted into a disc drive.

"SunnComm believes that by making erroneous assumptions in putting 
together his critical review of the MediaMax CD-3 technology, Halderman 
came to false conclusions concerning the robustness and efficacy of 
SunnComm's MediaMax technology," it said.

SunnComm, which trades on the Over-the-Counter Bulletin Board, said it 
has lost more than $10 million of its market value since Halderman 
published his report.

The software was used on a CD, Anthony Hamilton's "Comin' From Where I'm 
From," released last month. Halderman, who has done research in the past 
on other CD protection technologies, said the software could also be 
disabled by stopping a driver the software loads on the computer when 
the CD is played.

SunnComm alleged Halderman violated criminal provisions of the Digital 
Millennium Copyright Act in disclosing the existence of those driver files.

Halderman -- who received an undergraduate degree from Princeton earlier 
this year and is now pursuing a doctorate in computer science with an 
emphasis on computer security -- said he had not yet heard directly from 
SunnComm in regards to litigation but was unconcerned.

"I'm still not very worried about litigation under the DMCA, I don't 
think there's any case," he told Reuters. "I don't think telling people 
to press the 'Shift' key is a violation of the DMCA."

A spokesman for BMG, the unit of Bertelsmann AG that licensed SunnComm's 
software and released the Hamilton CD, declined to comment on the 
planned suit.

The music industry, claiming a sharp decline in CD sales is the result 
of digital piracy through online file-sharing services, has worked to 
develop methods to secure music on discs and restrict its copying.

Halderman's graduate advisor at Princeton is Ed Felten, a computer 
science professor who once sued the Recording Industry Association of 
America in a challenge to the constitutionality of the DMCA.

The RIAA had threatened action under the DMCA against Felten and 
colleagues after they said they would publish a paper disclosing flaws 
in an industry security initiative. That suit was eventually dismissed.


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