Princeton University
Computer Science Dept.

Freshman Seminar 136
The Speech is a Machine

Transcript of Oral Arguments, April 23, 2001

Spring 2001


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Introduction by Andrew Appel:

Welcome to this special meeting of the Princeton University Freshman Seminar, "The Speech is a Machine".

The copyright law of the United States derives from the Constitutional power granted to the Congress, "to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries."

The history of Copyright law is in finding the best (constitutionally mandated) balance between the limited exclusive rights of authors to prohibit copying, on the one hand, and the rights of the public to use copyrighted material. In the 19th and 20th centuries, it was difficult or inconvenient for authors and publishers to maintain complete control over the use of their material -- which gave the public some freedom in its use -- but it was difficult or inconvenient for the public to make wholesale perfect reproductions of copyrighted works -- which gave the copyright holders some protection.

In the 21st century the situation promises to be very different. Ordinary people routinely make electronic copies of electronic documents (and music), sometimes on a large scale, such as via Napster. And publishers are increasingly turning to technical content-protection devices and click-through license agreements that give readers and listeners much more limited rights than they had in the old days. Most technical protection measures work by encryption of copyrighted works, with decryption under the control of a specially licensed player or viewer. But it is all to easy to find the secret keys embedded in these viewers, and circumvent the protection measures. While circumvention may have some socially desirable effects in some cases -- it will enable fair use of the copyrighted material, or enable time-shifting and space-shifting by legitimate purchasers -- circumvention also allows wholesale copyright infringement.

In the digital world, how is it possible to preserve the financial incentives for authors and artists? In 1998 the Congress passed the Digital Millennium Copyright Act, which bans circumvention devices: bans manufacture, use, or trafficking in them. At about that time, the major Hollywood movie studios started releasing movies in DVD format, protected by the Contents Scrambling System, or CSS, an encryption technology. In 1999, a 15-year-old Norwegian published on the internet a computer program called DeCSS, which decrypts DVDs. By January 2000, DeCSS was posted on many web sites around the world, and the Motion Picture Association of America, representing the eight major movie studios, filed a lawsuit in Federal court in New York, seeking an injunction against three web-site operators to stop distributing DeCSS, on the grounds that the web sites were trafficking in a circumvention device.

At trial in the District Court, the defense raised many claims: free-speech guarantees of the First Amendment, the unconstitutionality of CSS's restrictions on fair use, the fact that the movie studios could not document any real-world copyright infringement using DeCSS, and others. However, Federal Judge Lewis Kaplan ruled for the plaintiffs, deciding that the DMCA's restrictions on speech are incidental to its restrictions on conduct and are content neutral; that the Congress's decision on how to balance fair use versus the potential for piracy is within its constitutional powers; that the DMCA does not require a finding of actual infringement to ban the distribution of a circumvention device.

The defendant, 2600 Magazine and its publisher Eric Corley, has appealed the district court's decision. In January, 2600 filed appeal briefs, and friends of the court filed 7 separate amicus briefs. In February, the MPAA filed its briefs, and in an unusual move the U.S. Justice Department filed a brief in support of the MPAA. Oral arguments in this case are scheduled for May 1st.

Mock Trial

The first-year undergraduate students in this Freshman Seminar have been studying issues relating to free speech rights as applied to computer programs. Today the students will pre-enact the oral arguments in the case of Universal City Studios, et al, vs Eric Corley, et al.

Acting as Justices of the Appellate Court are Timothy Allen, Meredith Desautels, Joshua Kauke, Thomas Mandecki, and Nathanial Ross. These Justices have specified four particular issues, raised in the appeal briefs, on which they wish to hear oral argument:

1) Does the DMCA primarily regulate conduct or speech as applied to DeCSS in this case, and therefore which sort of scrutiny applies, intermediate or strict? If intermediate scrutiny applies, is any incidental regulation of speech content-neutral? Essentially, is this regulation consistent with the First Amendment?

This will be argued by Jonathan Thomas, for 2600 Magazine, and Adam Tagert, for the Motion Picture Association.

2) Are links speech that incidentally perform a function or are they a function that is incidentally speech? Does functionality indicate less protection under the First Amendment?

This will be argued by Amit Koren, for 2600 Magazine, and Thais Melo, for the Motion Picture Association.
3) How is authority given to the consumer of a DVD, and what does this authority allow the user to do with a DVD?
This will be argued by Joshua Tauberer, for 2600 Magazine, and John Vennema, for the Motion Picture Association.
4) Does the DMCA grant users fair use rights? If fair use is granted to consumers, what rights do distributors possess in order to enable consumers access to those uses?
This will be argued by John Viventi, for 2600 Magazine, and John Blatz, for the Motion Picture Association.
Original transcript from court reporter
          1                         00-9185
                                        
          2     ________________________________________________
                                        
          3             United States Court of Appeals
                                        
          4                         for the
                                        
          5                      Second Circuit
                                        
          6                   *  *  *  *  *  *  *
                                        
          7         UNIVERSAL CITY STUDIOS, INC., PARAMOUNT
                   PICTURES CORPORATION, METRO GOLDWYN MAYER 
          8          STUDIOS, INC., TRISTAR PICTURES, INC.,
                    COLUMBIA PICTURES INDUSTRIES, INC., TIME
          9        WARNER ENTERTAINMENT COMPANY, L.P., DISNEY
                      ENTERPRISES INC., TWENTIETH CENTURY
         10                  FOX FILM CORPORATION,
              
         11   
              Plaintiffs-Appellees,
         12   
                                    against
         13                             
                      ERIC CORLEY, also known as Emmanuel 
         14          Goldstein, and 2600 ENTERPRISES, INC.,
              
         15   Defendants-Appellants,
              
         16                           and
                                        
         17           SHAWN C. REIMERDES and ROMAN KAZAN,
              
         18   Defendants.
              
         19     ________________________________________________
                                        
         20     ON APPEAL FROM THE UNITED STATES DISTRICT COURT
                                        
         21          FOR THE SOUTHERN DISTRICT OF NEW YORK
              
         22   
              
         23                TWIN COURT REPORTING, INC.
                         CERTIFIED SHORTHAND REPORTERS
         24                   POST OFFICE BOX 408
                            CREAM RIDGE, N.J. 08514
         25               609-758-2840 or 732-928-8822
              


          1              Oral argument was held at the Whig Hall 
          2   Senate Chamber, Princeton University Campus, 
          3   Princeton, New Jersey, before DOREEN FOX 
          4   KRENCHICKI, License No. XI00821, a Notary Public 
          5   and Certified Shorthand Reporter of the State of 
          6   New Jersey, on April 23, 2001, commencing at 
          7   1:45 P.M.
          8   
          9   
         10   
         11         
         12         B E F O R E:
         13   
                        THE HONORABLE JUSTICE MEREDITH DESAUTELS
         14   
                        THE HONORABLE JUSTICE TIMOTHY ALLEN
         15   
                        THE HONORABLE JUSTICE JOSHUA KAUKE
         16   
                        THE HONORABLE JUSTICE THOMAS MANDECKI
         17   
                        THE HONORABLE JUSTICE NATHANIAL ROSS
         18   
         19   
         20   
         21   
         22   
         23                TWIN COURT REPORTING, INC.
                         CERTIFIED SHORTHAND REPORTERS
         24                   POST OFFICE BOX 408
                            CREAM RIDGE, N.J. 08514
         25               609-758-2840 or 732-928-8822
              


          1   ATTORNEYS FOR PLAINTIFFS-APPELLEES:
              
          2         
                    ADAM TAGERT, ESQUIRE
          3         Counsel for the Motion Picture Assoc.
              
          4         THAIS MELO, ESQUIRE
                    Counsel for the Motion Picture Assoc.
          5   
                    JOHN VENNEMA, ESQUIRE
          6         Counsel for the Motion Picture Assoc.
              
          7         JOHN BLATZ, ESQUIRE
                    Counsel for the Motion Picture Assoc.
          8   
          9   
         10   
         11   ATTORNEYS FOR DEFENDANTS-APPELLANTS:
              
         12   
                    JONATHAN THOMAS, ESQUIRE
         13         Counsel for 2600 Magazine
              
         14         AMIT KOREN, ESQUIRE
                    Counsel for 2600 Magazine
         15   
                    JOSHUA TAUBERER, ESQUIRE
         16         Counsel for 2600 Magazine
              
         17         JOHN VIVENTI, ESQUIRE
                    Counsel for 2600 Magazine
         18   
              
         19   
         20   
         21   
         22   
         23                TWIN COURT REPORTING, INC.
                         CERTIFIED SHORTHAND REPORTERS
         24                   POST OFFICE BOX 408
                            CREAM RIDGE, N.J. 08514                     
         25               609-758-2840 or 732-928-8822
              

                                                                4
          1                JUSTICE DESAUTELS:  The Court will 
          2   hear first from Mr. Thomas.
          3                MR. THOMAS:  Good afternoon.  My name 
          4   is Jonathan Thomas and I, along with my colleagues, 
          5   will be representing 2600 Magazine.  These are the 
          6   appeals from the final judgment placing an 
          7   injunction on 2600 Magazine's publication of the 
          8   DeCSS algorithm. 
          9          Now, the issue at hand is more than about 
         10   preventing a magazine's publication of an 
         11   algorithm.  It is about more than DVDs.  The case 
         12   at hand is about the future of our right to speak.  
         13   It is about the future of journalism. 
         14          The publication of truthful, scientific, 
         15   educational and commercially viable information 
         16   must not be prohibited.  And the final 
         17   interpretation --
         18                JUSTICE ROSS:  Where exactly is the 
         19   truthfulness in a computer program?
         20                MR. THOMAS:  It's truth.  The fact is, 
         21   there's an algorithm that was written by somebody 
         22   and that information is being passed on to the 
         23   public.
         24                JUSTICE ROSS:  (Inaudible).
         25                MR. THOMAS:  Well, nothing.  Anything 

                                                                5
          1   that's written is truthful in that case. 
          2                May I continue? 
          3                Thank you. 
          4                Now, the final interpretation of the 
          5   DMCA by the District Court is unconstitutional.  If 
          6   upheld, that decision will be used by groups such 
          7   as the MPAA as a way to prohibit any publication 
          8   that is unfavorable to that particular group, 
          9   regardless of its implications to the rest of 
         10   society; whether they're good, bad or anything.  
         11   Most notably the good ones. 
         12                Now, the publication of DeCSS is 
         13   undoubtedly speech.  After all, that's what this 
         14   case is about. 
         15                JUSTICE ALLEN:  How do you define -- 
         16   the alternative view would be that it's merely a 
         17   tool, that source code is merely a tool to 
         18   accomplish something; why do you say speech as 
         19   opposed to being --
         20                MR. THOMAS:  No.  I'm saying the 
         21   publication of DeCSS is undoubtedly speech.  The 
         22   act of publishing it is a form of expression. 
         23                JUSTICE ALLEN:  Well, then again, what 
         24   you are doing is linking merely a form of speech.
         25                MR. THOMAS:  No, I'm not discussing 

                                                                6
          1   linking, but I can answer that.  But I'm sure -- 
          2   I'll be happy to do that shortly.  
          3                May I go on? 
          4                All right.  Now, the fact is that a 
          5   magazine was taken to Court for publishing the 
          6   truth.  And that's wrong.  And not only was the 
          7   publication of DeCSS speech, but the code itself is 
          8   speech. 
          9                I'd like to draw the Court's attention 
         10   to testimony made by Dr. Edward Felton in the 
         11   District Court on the issue of speech.  He was 
         12   asked this question; he was asked:  Based on your 
         13   experience with source code and object code, is it 
         14   your opinion that object code is expressive?  And 
         15   he replied:  Certainly.  He went on to say, and I 
         16   quote:  You can learn a lot from reading and 
         17   analyzing and executing object code if you know how 
         18   to do it.  And so can you learn about what the 
         19   author of the code, what the person who made the 
         20   code intended the program to do.  You can learn 
         21   about how the program is constructed, you can learn 
         22   about aesthetic and engineering decisions that the 
         23   person made.  And from all that, you can learn 
         24   things that the person who created the program put 
         25   in there. 

                                                                7
          1                Essentially, the transmission of ideas 
          2   from the author to the reader is done through the 
          3   code. 
          4                I'd also like to mention the District 
          5   Court's interpretation of DeCSS speech issue 
          6   relating to computer code.  They say:  It cannot 
          7   seriously be argued that any form of computer code 
          8   may be regulated without reference to First 
          9   Amendment doctrine. 
         10                It goes on to say:  As computer code, 
         11   whether source or object, is means of expressing 
         12   ideas, the First Amendment must be considered 
         13   before its dissemination may be prohibited or 
         14   regulated. 
         15                Now, because DeCSS and the publication 
         16   of DeCSS are undoubtedly speech, any regulation of 
         17   either must first undergo strict scrutiny in order 
         18   to guarantee its constitutionality.  But the 
         19   District Court failed to take the Constitution 
         20   seriously in its ruling and it did not interpret 
         21   the DMCA correctly. 
         22                Now, the DMCA clearly states, and I 
         23   quote section (c)(4):  Nothing in this section 
         24   shall enlarge or diminish any rights of free speech 
         25   or the press for activities using consumer 

                                                                8
          1   electronics, telecommunications or computing 
          2   products. 
          3                And the District Court did not even 
          4   mention these provisions.  It made no attempt to 
          5   state how its decision was consistent with the laws 
          6   of the land.  And essentially, it put the DMCA on a 
          7   crash course with the Constitution.  However, there 
          8   is a way around this problem.  And it is my hope 
          9   that the Court will see this today. 
         10                Now, if one makes a distinction 
         11   between acts that are clearly illegal, using such 
         12   theories as conspiracy and agency, from acts that 
         13   are, such as in this case, the publication of this 
         14   information, which are journalistic acts and 
         15   constitute no real imminent danger; then one can 
         16   clearly see that the laws can coexist harmoniously 
         17   and there isn't really -- there's no real conflict 
         18   between them, if you make that distinction. 
         19                And it's my hope that the Court can 
         20   find a final solution, a reasonable solution to 
         21   this problem today, without jeopardizing the future 
         22   of journalism.
         23                JUSTICE DESAUTELS:  How do you argue 
         24   that the expressiveness of computer code is more 
         25   legally important than its consequences; meaning, 

                                                                9
          1   the analogy to an assassin whose actions may be 
          2   expressed with an idea, but what an assassin does 
          3   at his or her actions are more legally important?
          4                MR. THOMAS:  See, the thing is, 
          5   computer code, if you relate it to computer science 
          6   in the field, there are -- computer scientists are 
          7   professionals.  It is a field that's not really -- 
          8   that's not illegal, such as if you're a 
          9   professional assassin, you're not really encouraged 
         10   to do that, but as a professional computer 
         11   scientist, that's your job.  If you're not allowed 
         12   to communicate with other computer scientists in 
         13   the same field, then I see that as very damaging.
         14                For example, if you have ten computer 
         15   scientists each in their own room, they are going 
         16   to be much less productive than if you have ten 
         17   computer scientists all in one room; whereas ten 
         18   assassins, you don't collaborate necessarily, I 
         19   wouldn't imagine.  I'm not an expert on assassins, 
         20   though. 
         21                I would like to reserve a final time, 
         22   please.
         23                MR. TAGERT:  Good afternoon.  I'm Adam 
         24   Tagert.  I'll be arguing that DeCSS is actually a 
         25   device and DMCA regulates conduct, not speech. 

                                                               10
          1                First of all, you have to realize that 
          2   this program, which it was being trafficked, is a 
          3   device that decrypts DVDs and stores the result.  
          4   It is purely a device.  It has very little and/or 
          5   none expressive characteristics.  So it does not 
          6   warrant to be protected by the First Amendment. 
          7                This case is not about speech or 
          8   publicizing about the algorithm.  This is about 
          9   trafficking a device to commit crimes. 
         10                JUSTICE ALLEN:  He was publishing an 
         11   algorithm, so, he was publishing, so trafficking 
         12   might have (unintelligible), whether he was 
         13   publishing (unintelligible).
         14                MR. TAGERT:  Your Honor, the actual 
         15   form that he was posting to the web was actually a 
         16   device that was intended to decrypt DVDs.  It was 
         17   not actually intended for someone to understand. 
         18                JUSTICE ALLEN:  But, Mr. Thomas stated 
         19   that Mr. Felton testified that object code is in 
         20   fact expressive.
         21                MR. TAGERT:  To a select group of 
         22   people; correct?  And the DMCA actually allows for 
         23   encryption research to take place.  But it's not 
         24   available to have this -- an object oriented 
         25   program to be distributed over the Net. 

                                                               11
          1                JUSTICE ALLEN:  You're arguing that it 
          2   would be fine to distribute the source, but not the 
          3   object code?
          4                MR. TAGERT:  I'm arguing that he can 
          5   distribute the code to any person in good faith in 
          6   encryption research.  The Court has already 
          7   concluded that the magazine was not in good 
          8   encryption research. 
          9                JUSTICE MANDECKI:  How do you figure?
         10                MR. TAGERT:  That they were not in 
         11   good encryption research?  That the actual case, 
         12   the way they did it, they just published it to the 
         13   whole world; where only a select people would 
         14   actually use the information in the actual 
         15   educational reference.  And the DMCA actually 
         16   allows for research, and Congress had no intent to 
         17   stifle any type of research in the encryption 
         18   world. 
         19                JUSTICE MANDECKI:  Aren't the readers 
         20   of 2600 Magazine actually people who might be able 
         21   to devote more, better programs in the future, to 
         22   pursue --
         23                JUSTICE ALLEN:  By it's very 
         24   readership, it provides some sort of productivity 
         25   because, as they state in the brief, there are many 

                                                               12
          1   (unintelligible).  So it's unlikely that many 
          2   (unintelligible) people read it.  
          3                MR. TAGERT:  But it's also most likely 
          4   those who read it actually are trying to commit an 
          5   illegal purpose.  Those who actually -- encryption 
          6   algorithm, in any form, is not prohibited.  So, if 
          7   he actually wanted to explain how this encryption 
          8   research worked, and CSS encryption, wouldn't an 
          9   explanation in plain English be much more effective 
         10   in conveying an idea than some object-oriented 
         11   program which only a select few can understand?
         12                JUSTICE ROSS:  For the few that can 
         13   understand it, wouldn't that be better than the few 
         14   that can't understand it, that would be working 
         15   with it, wouldn't that be better to read than the 
         16   English...
         17                MR. TAGERT:  Most likely, that would 
         18   be correct.  But this is the world we're talking 
         19   about. 
         20                He is permitted, under the DMCA, to 
         21   distribute, to do those select few.  So, if you 
         22   just distribute to those which actually have 
         23   encryption research, it would be permitted. 
         24                You also have to realize that computer 
         25   programs are devices because, in Sega Enterprises 

                                                               13
          1   versus Accolade, the Court ruled that computer 
          2   programs are devices; likewise, in Computer 
          3   Associates versus Atari, the same result was 
          4   concluded. 
          5                Programs are not protected by the 
          6   First Amendment.  We can see that in the case, CFTC 
          7   versus Vartuli.  It's a case where a computer 
          8   program outputted plain English.  Since the user of 
          9   the program didn't actually have to put any mental 
         10   thought behind it, the program was deemed not 
         11   protected. 
         12                JUSTICE ALLEN:  You're arguing that 
         13   all programs are not covered, that no programs are 
         14   covered that have any (unintelligible).
         15                MR. TAGERT:  That's correct.  
         16   Especially ones that have illegal purposes. 
         17                JUSTICE ALLEN:  How do you -- it's 
         18   been argued by 2600 that they are expressive 
         19   elements of the code.  Do you deny this entirely?
         20                MR. TAGERT:  I deny --
         21                JUSTICE ALLEN:  That code cannot 
         22   communicate any ideas whatsoever?
         23                MR. TAGERT:  Plain English 
         24   communicates ideas much better than zeros and ones.  
         25                JUSTICE ALLEN:  Okay.  So, object 

                                                               14
          1   code, you're compiling (inaudible) programs as 
          2   opposed to source code.
          3                MR. TAGERT:  Source code is meant to 
          4   be compiled.  And the actual -- the most effective 
          5   way of communicating is actually using diagrams and 
          6   English explanations.  The actual program, that is 
          7   a device.
          8                JUSTICE ALLEN:  I believe that Mr. 
          9   Tureski (ph.), in his testimony in the District 
         10   Court case, proved or stated that it would be far 
         11   more an explanation provided by a computer program 
         12   (unintelligible) encoded in standard programming 
         13   language would be far more understandable to other 
         14   computer scientists than would a description in 
         15   plain English.
         16                MR. TAGERT:  We're not talking about 
         17   publishing to the computer science world.  We're 
         18   talking about publishing to the world.  The 
         19   computer science world is allowed to communicate 
         20   with themselves in object code and source code. 
         21                Let's assume that this whole thing is 
         22   speech.  The Court has ruled in United States 
         23   versus Rowell, that the First Amendment is not a 
         24   way of protecting speech, when it's the method of 
         25   the illegal crime. 

                                                               15
          1                In Cox versus Louisiana, may I quote 
          2   the Court:  It has never been deemed an abridgement 
          3   of freedom of speech or press to make a course of 
          4   conduct illegal merely because the conduct was in 
          5   part initiated, evidenced or carried out by means 
          6   of language, either spoken, written or printed. 
          7                So, even with the argument that it is 
          8   speech, the argument's still flawed.  And we have 
          9   to remember the DMCA allows for, in good faith, 
         10   encryption research. 
         11                Assuming that this really is conduct, 
         12   we need to take the intermediate approach and 
         13   realize if it's content-neutral. 
         14                Does DMCA pay attention to what the 
         15   conduct is?  No.  It does not care if a black box 
         16   that took a DVD and exported in unencrypted format, 
         17   doesn't care if it's that, the DeCSS program or any 
         18   other device that actually would decrypt a DVD.  It 
         19   does not allow devices that bypass protection on 
         20   material. 
         21                We also have to look at the actual 
         22   intent of Congress. 
         23                Congress wanted to build --
         24                JUSTICE ALLEN:  So, say, for instance, 
         25   you had -- the example was given of a spell 

                                                               16
          1   checker, perhaps a basic example.  Under the same 
          2   circumstances if a spell checker was distributed, 
          3   would it also fall under the jurisdiction of the 
          4   DMCA if it was applied to copyright or involved 
          5   copyright infringement; would it basically prohibit 
          6   the distribution of a spell checker?
          7                MR. TAGERT:  Is the spell checker 
          8   avoiding some --
          9                JUSTICE ALLEN:  Yeah, in this case, in 
         10   this hypothetical example, it would be.
         11                MR. TAGERT:  We're prohibiting any 
         12   device that bypasses content security.  Doesn't 
         13   matter what device it is.
         14                JUSTICE DESAUTELS:  But a spell 
         15   checker would not be commercially significant.
         16                MR. TAGERT:  That's true.  But it's 
         17   still bypassing something that was put in there not 
         18   to be there. 
         19                The government is allowed to build a 
         20   device.  It's allowed -- they made a law that said:  
         21   The purpose of this is to prevent rampant illegal 
         22   piracy.  Without protecting it, what's the point of 
         23   actually encrypting it, if the user can simply 
         24   decrypt it?  There is none.  So without some form 
         25   of protection to the encryption, there's absolutely 

                                                               17
          1   no point and thus we would have rampant piracy. 
          2                The motives of Congress are actually 
          3   very important in this case because they want to -- 
          4   they wanted to ban technologies -- they did not 
          5   want to ban technologies, but devices.  The whole 
          6   fact that they're not banning ideas or anything 
          7   else like that, that shows it's content-neutral. 
          8                There's a few arguments I'd like to 
          9   say. 
         10                DeCSS is not educational.  This is not 
         11   about the education of people.  This is about 
         12   trafficking of a device. 
         13                JUSTICE ALLEN:  You say -- do you 
         14   concede that it has educational uses, such as 
         15   encryption research, such as allowing people 
         16   with -- allowing interoperability?
         17                MR. TAGERT:  This case isn't actually 
         18   about the education point of it.  This is about 
         19   distributing a device to traffic. 
         20                JUSTICE ALLEN:  But under 
         21   (unintelligible) provisions we are looking at how 
         22   the distribution of it allows fair use or enables 
         23   fair use.
         24                MR. TAGERT:  The fair use topic will 
         25   be covered slightly later. 

                                                               18
          1                Also, the DMCA, we have to remember, 
          2   allows for encryption research.  That's the main 
          3   key.  It permits those who are actually in the 
          4   field of encryption research to share their ideas 
          5   among themselves.  So these ten computer scientists 
          6   are actually allowed to be in the same room. 
          7                I'd like to stop. 
          8                JUSTICE DESAUTELS:  The Court will 
          9   hear from Mr. Thomas.
         10                MR. THOMAS:  I was troubled by a few 
         11   things that Mr. Tagert mentioned there. 
         12                First of all, his point that 2600 was 
         13   not a computer science magazine, that its readers 
         14   were not going to benefit from the distribution of 
         15   DeCSS; I find that wrong. 
         16                The fact is that some of its readers 
         17   may not be computer scientists or in that field -- 
         18   not by profession, but by hobby.  But the fact is 
         19   that there are undoubtedly some people who will of 
         20   course benefit from publication of that in the 
         21   field of computer science; the advancement of 
         22   encryption.  And so, therefore, I don't agree that 
         23   2600 is not a computer science magazine at all. 
         24                Next; his point that a magazine may 
         25   not publish or in this case 2600 may not publish 

                                                               19
          1   secure information about -- he says it does not 
          2   warrant First Amendment protection because it's 
          3   purely a device and not anything else.  There was a 
          4   case, Florida Star versus BJF, and in that ruling 
          5   the Court stated that if a newspaper lawfully 
          6   obtains truthful information about a matter of 
          7   public significance, then the government may not 
          8   constitutionally punish publication of the 
          9   information absent a need to further a state 
         10   interest of the highest order. 
         11                Two things strike me in that 
         12   statement.  First of all, the public significance 
         13   clause.  And, as I've argued previously, this -- 
         14   the DeCSS itself has significant public use in 
         15   education, science and also in terms of commerce. 
         16                JUSTICE KAUKE:  To what degree and 
         17   what portion of the public do you think this would 
         18   actually have significance to --
         19                MR. THOMAS:  Indirectly, I think a 
         20   large portion.  But directly, less.  Because, for 
         21   example, there are scientists who are working on 
         22   ways of using encryption to promote technology that 
         23   can search through video, for example, for specific 
         24   portions.  And I think that if that's allowed to 
         25   progress, then there may be widespread use.  But, 

                                                               20
          1   at this point, probably not.  But I think in the 
          2   future.
          3                JUSTICE KAUKE:  More generally, 
          4   though, educated people learning and --
          5                MR. THOMAS:  Actually, I think the 
          6   fact is that the distribution of this may allow 
          7   people without the education to use it, which may 
          8   help society more, because those who aren't 
          9   privileged enough to understand this can benefit by 
         10   those who do, so they can do that.
         11                Further, it says:  Absent a need to 
         12   further a state interest.  So, therefore, unless 
         13   there's a need to further state interest, then a 
         14   newspaper can publish this. 
         15                And I don't see that the MPAA's 
         16   argument as -- decryption of DVDs as a state 
         17   interest of highest order.  I think it may be in 
         18   their interest, but I don't think that that 
         19   necessarily trumps as law. 
         20                Further, Mr. Tagert said that the DMCA 
         21   does not care and that it's not expression in this 
         22   case, DeCSS.  However, I remind you of the 
         23   provisions of the DMCA; that nothing in this 
         24   section shall enlarge or diminish any rights of 
         25   free speech or the press. 

                                                               21
          1                JUSTICE ALLEN:  How is DeCSS any more 
          2   expressive than, say, a -- any more expressive than 
          3   distributing a --
          4                MR. THOMAS:  Like I've said before, it 
          5   definitely has implications for the progression of 
          6   science, not necessarily the destruction of 
          7   material.   
          8                So, my time is up.
          9                JUSTICE DESAUTELS:  The Court will now 
         10   hear from Mr. Koren.
         11                MR. KOREN:  Good afternoon.  My name 
         12   is Amit Koren.  I'm here today representing 2600 
         13   Magazine. 
         14                The injunction issued by the District 
         15   Court prohibiting Mr. Corley from linking to 
         16   certain websites containing the DeCSS source code 
         17   is unconstitutional. 
         18                In analyzing this issue, we have to 
         19   consider two questions:  First, is it legal and/or 
         20   constitutional to publish the addresses of URLs of 
         21   websites that have the DeCSS code in any form of 
         22   media, whether to a newspaper, a magazine or a 
         23   website?  Second, if so, do hypertext links that 
         24   direct people to these sites constitute functional 
         25   speech that can be controlled or limited, or do 

                                                               22
          1   they constitute nonfunctional speech protected by 
          2   the First Amendment? 
          3                The answer to the first question is 
          4   absolutely.  The very nature of the First Amendment 
          5   is to protect the dissemination of information.  
          6   The provisions for freedom of speech and freedom of 
          7   the press are intended to protect this right. 
          8                This freedom to publish anything means 
          9   anybody can publish something and therefore it 
         10   requires an individual to verify some of the 
         11   information that they receive.  This is only 
         12   possible with proper documentation and listing of 
         13   sources.  Books, nonfiction books, historical works 
         14   have footnotes; newspapers quote people so that 
         15   people can validate the information they receive. 
         16                People have the right to seek out 
         17   these sources whether they're historical documents 
         18   or source code listed on the web.  And, therefore, 
         19   since people have this right, publishers have the 
         20   duty to provide this information. 
         21                If I, a Princeton student, was to 
         22   write a paper about cryptography, I would be 
         23   obligated to cite my sources, whether -- and link 
         24   to certain sites in order to validate the 
         25   information that I provide. 

                                                               23
          1                As to the second question, links are 
          2   nothing more than what I've just described in a 
          3   slightly different format. 
          4                HTML is the building block for most 
          5   web pages, but it's not a programming language.  
          6   There are no iterations, there's no input, there's 
          7   no variables, and it's not converted to executable 
          8   statements.  As it stands for hypertext markup 
          9   language, basically tags that give the browser 
         10   formatting directions and tells the browser how to 
         11   lay out the text and images on the web page.  The 
         12   links specifically tell browsers to underline the 
         13   text and change its colors, and then if the mouse 
         14   is clicked on that region of the page, the browser 
         15   redirects itself to the new address. 
         16                JUSTICE ROSS:  By clicking or telling 
         17   the browser to do that, doesn't that indicate some 
         18   sort of functionality?
         19                MR. KOREN:  Yes and no.  It indicates 
         20   some sort of functionality, but only in the terms 
         21   that it tells -- the browser itself executes the 
         22   function; whereas the link just tells it where to 
         23   go.  It's just information -- it's just a footnote.  
         24   It's saying, this is where the information is.  And 
         25   the browser takes that information, and when 

                                                               24
          1   it's -- and when the user clicks on that web page 
          2   or on that link, the browser redirects itself to 
          3   the other web page. 
          4                It's really only just a shortcut so 
          5   that users don't have to copy and paste URL into 
          6   the navigation window and press enter. 
          7                All this means that links are not 
          8   functional speech as source code is sometimes 
          9   interpreted to be.  Rather, they're regular speech 
         10   protected by the First Amendment. 
         11                JUSTICE ALLEN:  But they are at some 
         12   level functional?
         13                MR. KOREN:  They are at some level 
         14   functional because they provide the information as 
         15   to where the browser is to go.  But they don't 
         16   actually -- they don't serve the function of going 
         17   to somewhere else.
         18                JUSTICE DESAUTELS:  Regardless of what 
         19   actually executes the travel from one site to 
         20   another, their effect of the links is a direct 
         21   enabling to the circumvention technology.
         22                MR. KOREN:  Not necessarily direct.  A 
         23   direct enabling would be -- there are some links 
         24   that can automatically direct you to a different 
         25   web page.  So that if you click and go to Yahoo, it 

                                                               25
          1   can automatically redirect you to somewhere else.  
          2   That would be a direct enabling.  This basically 
          3   allows the browser to know where to go if the user 
          4   clicks on that page. 
          5                JUSTICE DESAUTELS:  The user has the 
          6   right to click --
          7                MR. KOREN:  Yes.  Exactly. 
          8                JUSTICE MANDECKI:  Are you arguing 
          9   that Mr. Corley is obviously a rightful man?
         10                MR. KOREN:  Say again?
         11                JUSTICE MANDECKI:  Mr. Corley is 
         12   obviously a rightful man?
         13                MR. KOREN:  Sure. 
         14                JUSTICE MANDECKI:  Right.
         15                We all here know that circumvention, 
         16   under the law, circumventing technology like this 
         17   is linking.
         18                MR. KOREN:  Yes.  But linking to a 
         19   different web page is by no means circumvention. 
         20                JUSTICE MANDECKI:  So say Mr. Corley 
         21   takes off the code from his website and he knows 
         22   that he could link to another website.  Isn't 
         23   that -- that's obviously wrong, isn't it?
         24                MR. KOREN:  I disagree.  Because 
         25   whether or not Mr. Corley has the right to publish 

                                                               26
          1   the source code is inconsequential.  If you want to 
          2   punish the people that publish the source code, you 
          3   can go after the people that have the website 
          4   somewhere else.
          5                JUSTICE ALLEN:  By providing the link 
          6   he was trafficking in DeCSS.
          7                MR. KOREN:  He wasn't trafficking.  He 
          8   was providing information as to where one could 
          9   find it. 
         10                JUSTICE ALLEN:  He was providing --
         11                MR. KOREN:  He wasn't saying, here's a 
         12   source code, you can download it and execute -- 
         13                JUSTICE ALLEN:  He was providing easy 
         14   access --
         15                MR. KOREN:  Yes. 
         16                JUSTICE ROSS:  Wasn't he also 
         17   encouraging people to --
         18                MR. KOREN:  Hosting a link to 
         19   something doesn't encourage people to go.  It 
         20   provides people that want the information --
         21                JUSTICE MANDECKI:  He searched out 
         22   websites that do have the code. 
         23                MR. KOREN:  I'm sorry?
         24                JUSTICE MANDECKI:  He searched out 
         25   websites that do have the code.

                                                               27
          1                MR. KOREN:  Yes.  So he did the work 
          2   for others.  But he didn't encourage others to do 
          3   it. 
          4                JUSTICE ALLEN:  He did encourage 
          5   others to do it.  I think he stated that he 
          6   encouraged others to go out and to link to other 
          7   sites, to disseminate as widely as possible.
          8                MR. KOREN:  Okay. 
          9                I still strongly affirm that he's not 
         10   trafficking the DeCSS himself, but rather providing 
         11   information as to where it is available for others 
         12   to use.  That is a constitutional right that we 
         13   must uphold so that it can't be taken away in other 
         14   forms. 
         15                Unless the judges have any more 
         16   questions, I'll save my time for rebuttal.
         17                JUSTICE DESAUTELS:  The Court will 
         18   hear from Ms. Melo.
         19                MS. MELO:  Good afternoon.  My name is 
         20   Thais Melo.  I'm here presenting the plaintiffs. 
         21                Around a year ago the defendants 
         22   posted the code for DeCSS in their web page.  They 
         23   did not research.  They only posted the code on the 
         24   web page, making it easily available for anyone 
         25   with an Internet connection. 

                                                               28
          1                We quickly brought the case to court, 
          2   to which defendants responded with what they called 
          3   an act of civil disobedience, which basically was 
          4   an increased effort to keep DeCSS available by 
          5   making people a link to it and create sites. 
          6                The first item I'd like to argue is 
          7   that HTML is not a computer code.  The other things 
          8   you can do, it can be very functional.  You can 
          9   create splash pages, you can -- using some 
         10   variations like HTML, actually using animations on 
         11   the web page.  Obviously you can use it as computer 
         12   code.  Just because it's not normally compiled like 
         13   you would compile C code doesn't mean it's not 
         14   code. 
         15                Also, linking is essentially 
         16   functional because it not only tells you where the 
         17   information is, but with a single click of the 
         18   mouse --
         19                JUSTICE ALLEN:  -- is functional by 
         20   the same criteria?  You have a recipe, you follow 
         21   that recipe and you get a result or a cake or 
         22   whatnot.
         23                MS. MELO:  Recipes can be somewhat 
         24   functional, but in this case, there is no computer 
         25   following your recipe.  Like any other computer 

                                                               29
          1   code, it's basically a recipe for your computer.  
          2   That's not necessarily easy or human readable very 
          3   often. 
          4                So, we reached the conclusion that, 
          5   yes, links do have some (unintelligible) expression 
          6   to it. 
          7                The earlier Court decided to -- well, 
          8   the DMCA obviously benefits from linking because 
          9   it's the only way that you can keep people from 
         10   posting or linking to DeCSS, because otherwise you 
         11   don't have a posting on your website; but you have 
         12   a link to it, anyone can see it. 
         13                The only question here is if the DMCA 
         14   is consistent with the First Amendment in this 
         15   special injunction.  Since links do have some 
         16   expression value, we have to use the O'Brian 
         17   standard test to figure if it is constitutional or 
         18   not.
         19                JUSTICE ROSS:  You only want to make 
         20   it apply to this specific case and it should not be 
         21   a general standard?
         22                MS. MELO:  It can be used as a general 
         23   standard.  Just the argument right now is the 
         24   linking injunction. 
         25                JUSTICE ROSS:  The linking -- the 

                                                               30
          1   District Court set up a new standard regarding 
          2   linking.  Are you arguing that this standard should 
          3   be applied or --
          4                MS. MELO:  No. 
          5                JUSTICE ROSS:  -- or for this one 
          6   specific case?
          7                MS. MELO:  I'm arguing the standards 
          8   apply, especially for this specific case. 
          9                So, the first test would be if the 
         10   linking injunction serves the same purpose as the 
         11   prohibition to post DeCSS or your own website.  
         12   Like I discussed before, there is no point in 
         13   prohibiting to post DeCSS if you can link it in the 
         14   mirror site.  The user doesn't know the difference 
         15   if you click in a link and you go to some page or 
         16   some division of the same website or if you go to 
         17   another website.
         18                JUSTICE DESAUTELS:  Is there a 
         19   difference for the user between just clicking on a 
         20   link and copying an address and pasting it into the 
         21   browser? 
         22                JUSTICE ALLEN:  By making it slightly 
         23   easier to access the code, is this somehow making 
         24   it more legal?
         25                MS. MELO:  No, it's not.  But since we 

                                                               31
          1   cannot have pure control over speech, like just 
          2   writing down the address would be, at least to some 
          3   extent, we'd like to have control over this. 
          4                Also, it's a lot -- it's a lot easier 
          5   to just click in the link and see what's there, 
          6   than just copying it. 
          7                JUSTICE ALLEN:  So, should something 
          8   be given First Amendment protection based on the 
          9   ease of dissemination or the ease of use?
         10                MS. MELO:  I'd like to go back to the 
         11   specific case in which we are not arguing that he 
         12   cannot like publish the English description of the 
         13   DeCSS.  Of course with the English description, a 
         14   computer scientist (unintelligible) translate into 
         15   code and compile it and easy to get DVDs as a 
         16   circumvention device. 
         17                Just as links, anybody who knows, at 
         18   least has some familiarity of computers and 
         19   (unintelligible) your browser and just go to the 
         20   place they want.  But there's a difference in 
         21   saying, oh, there's some information there and 
         22   putting a link in which you clearly tell the 
         23   person, like, you're encouraging them to go see it, 
         24   if you actually put the link there. 
         25                The second test would be -- this is 

                                                               32
          1   unrelated to the suppression of free expression.  
          2   And I think this is answered by the earlier 
          3   argument that what was posting DeCSS or linking to 
          4   it is basically the same thing for the user -- 
          5   well, for the specific user. 
          6                The third test, and the most important 
          7   one, is if the regulation promotes a substantial 
          8   governmental interest that would not be achieved -- 
          9   that would be achieved less efficiently, absent a 
         10   regulation.  It is especially true in the case of 
         11   foreign sites. 
         12                Obviously, the DMCA or any American 
         13   regulation cannot reach foreign sites.  And it's 
         14   fairly easy to create a site in France or in 
         15   Brazil, even from the US, and if those links can be 
         16   easily posted and linked from an American site and 
         17   we can have no control over that, it's fairly 
         18   pointless to prohibit posting to DeCSS. 
         19                One last point of concern is the 
         20   possible chilling effect in communication in the 
         21   Internet by creating liability for linking.  While 
         22   the injunction is sufficiently moderate in that it 
         23   does not prohibit any kind of good faith linking, 
         24   the case here is that the defendants were obviously 
         25   trying to traffic the circumvention device.  They 

                                                               33
          1   were fairly clear about their sites when they were 
          2   doing their act of civil disobedience, and they 
          3   didn't have any kind of expression involved.  They 
          4   just wanted to keep the code for DeCSS up.  And 
          5   they just told people to make mirror sites that 
          6   contain nothing but their code. 
          7                JUSTICE ALLEN:  So you want to 
          8   prohibit the linking to anything that is functional 
          9   and might perhaps violate copyrighting?
         10                MS. MELO:  This injunction, the 
         11   linking injunction, is moderate enough in the sense 
         12   that if you put link to a site and you don't know 
         13   there is an illegal circumvention device there, or 
         14   if you -- well, say the New York Times website has 
         15   DeCSS in it, it would still not be illegal to link 
         16   to it because there's so much more --
         17                JUSTICE ALLEN:  (Unintelligible) 2600 
         18   website that isn't necessarily related to DeCSS.
         19                MS. MELO:  That's true.  But the thing 
         20   that's in question here is the -- two things.  2600 
         21   website linking to thousands of mirror sites that 
         22   have nothing but an HML source with the code and 
         23   nothing else, and they clearly had the intent to 
         24   link to DeCSS and none of the other content -- or 
         25   they didn't have any interest in the other content 

                                                               34
          1   that was there; while their clear intention was the 
          2   traffic circumvention device. 
          3                JUSTICE KAUKE:  Is it not in the 
          4   user's discretion whether or not to click on one of 
          5   these links, having seen DeCSS is not available on 
          6   the 2600 site, they have the option to continue 
          7   their search of DeCSS or not, and --
          8                MS. MELO:  Well, if you have a gun, 
          9   it's still your own discretion if you want to kill 
         10   someone.  But you still cannot sell guns 
         11   instrumentally.  You need some kind of a relation.  
         12   And of course the user -- but the thing is the site 
         13   is showing the users and like telling them to 
         14   actually go there and see it.  It's not just -- 
         15   it's not that they just gave him some address.  
         16   They're actually giving him the link.  He can 
         17   easily click and see the code.
         18                JUSTICE DESAUTELS:  I'd like to go 
         19   back to the First Amendment. 
         20                Would you say that merely printing an 
         21   address without making it a direct link merits more 
         22   First Amendment protection than a direct link?
         23                MS. MELO:  Yes.  Because it has no 
         24   functional --
         25                JUSTICE DESAUTELS:  But the effect 

                                                               35
          1   could be -- is almost exactly the same. 
          2                JUSTICE MANDECKI:  With two more 
          3   clicks. 
          4                JUSTICE ALLEN:  Where would you draw 
          5   the line between functional and nonfunctional?
          6                MS. MELO:  If you can click onto 
          7   something -- links, they're a lot like road signs.  
          8   If you only had, without the HTML code, it would be 
          9   a lot more like a road sign.  Like, oh, you have 
         10   this, if you're going this way, you have this.  But 
         11   once you do the HTML code, you add this entire 
         12   layer of instrumentality to it and you can just 
         13   automatically click on it and go anywhere. 
         14                It makes life a lot easier, and also 
         15   when you're linking to it, you want the users to go 
         16   there. 
         17                JUSTICE ALLEN:  So, it warrants First 
         18   Amendment protection on the basis of its use?
         19                MS. MELO:  It warrants First Amendment 
         20   protection in the sense it's a device.  It's more 
         21   of a device than speech. 
         22                JUSTICE MANDECKI:  Even if you were 
         23   able to get rid of all these links, how effective 
         24   do you think it would be to, like, even if you get 
         25   rid of them, how effective would it be to eliminate 

                                                               36
          1   the flow of say a code (inaudible).
          2                MS. MELO:  I would say it actually 
          3   creates a good amount in the sense that most of the 
          4   sites -- there are not thousands of DeCSS copies in 
          5   the Internet.  There are more of like a lot of 
          6   mirrors connected to each other.  And if you do a 
          7   search, you would find maybe ten unique DeCSS 
          8   pages.  It would probably reduce the flow 
          9   considerably. 
         10                JUSTICE MANDECKI:  Say hackers are 
         11   basically the people we're dealing with here; you 
         12   think just because it's written down as a URL, 
         13   they're going to stop right there and say, hey, 
         14   there's no link here, I can't go any further?
         15                MS. MELO:  Not necessarily.  But 
         16   usually not -- because things are illegal doesn't 
         17   stop people from doing it.  But it does stop the 
         18   majority of people from doing it.  And that's good 
         19   enough, as our society has proved.
         20                JUSTICE DESAUTELS:  Thank you. 
         21                MR. KOREN:  The representative for the 
         22   MPAA just conceded that it's legal to publish the 
         23   URL as not a link, just regular text; and then went 
         24   on to argue that people would stop there because -- 
         25   the majority of people would stop and wouldn't go 

                                                               37
          1   to this link simply because it wasn't linked and 
          2   you had to copy and paste it. 
          3                They also argued that HTML was a 
          4   functional language because of aspects of DHTML, 
          5   Flash, et cetera.  But links don't have anything to 
          6   do with that.  Links are basic, basic HTML.  They 
          7   come from conversion HTML 1.0.  They're just 
          8   regular tags.  They're not anything complicated. 
          9                Furthermore, they argued that one 
         10   should prohibit people from linking to DeCSS 
         11   websites or sites that contain that code.  As soon 
         12   as you prohibit one person from linking to it, 
         13   can't you also prohibit everybody else from linking 
         14   to it?  Can you prevent search engines from linking 
         15   to certain sites just because they don't want to 
         16   link to?  Like if you go to Google and you search 
         17   for DeCSS, you'll probably find the sites and 
         18   they'll be linked.  Does that mean that as soon as 
         19   you -- this injunction will be applied to Google or 
         20   Yahoo or any other search engine?  It doesn't 
         21   link --
         22                JUSTICE ROSS:  I think the intent of 
         23   Google and other search engines is slightly 
         24   different than 2600 Magazine.
         25                MR. KOREN:  The intent is to tell 

                                                               38
          1   people where to find this information.  That's 
          2   exactly the intent of Google.  So, say I'm looking 
          3   for this information, where can I find it?  People 
          4   go to 2600 and they say, where can I find this 
          5   information?  And there's a list right there of 
          6   links they can go to.
          7                JUSTICE KAUKE:  Do you see any 
          8   difference whether it's on the web page or written 
          9   in the magazine?
         10                MR. KOREN:  I see no difference.  
         11   Either way, you start up your browser, type it in 
         12   and you're there.  It's like the difference between 
         13   stairs and escalators.  Escalators get you there 
         14   automatically, but stairs you have to climb up.  
         15   But either way, you start someplace and you get to 
         16   the same place.  There's no difference in the path 
         17   you take.
         18                JUSTICE ALLEN:  So you're conceding 
         19   the act of linking itself is illegal, but the act 
         20   of publishing (unintelligible) is not?
         21                MR. KOREN:  No.  I'm saying publishing 
         22   links is legal.  It's unconstitutional to prohibit 
         23   linking. 
         24                I'm saying that, yes, you have to go 
         25   up the stairs, but if you have to get from point A 

                                                               39
          1   to point B, you're going to do it either way.  You 
          2   might as well take the easier route if there's an 
          3   escalator there.
          4                JUSTICE DESAUTELS:  The Court is going 
          5   to take a short recess.  Five minutes. 
          6                (Whereupon a brief recess was 
          7       taken.)
          8                JUSTICE DESAUTELS:  The Court will now 
          9   hear from Mr. Tauberer.
         10                MR. TAUBERER:  Good afternoon.  My 
         11   name is Josh Tauberer.  I'm representing 2600. 
         12                I'm going to look at the authority 
         13   that's given to the use of DeCSS.  We should take a 
         14   look at why authority is, firstly, important. 
         15                The basis of this case is that DeCSS 
         16   is or is not a circumvention device.  The District 
         17   Court ruled that it is a circumvention device and 
         18   they in fact said it was clearly a circumvention 
         19   device.  But they failed to look at what a 
         20   circumvention device -- what is required of DeCSS 
         21   for it to be a circumvention device. 
         22                By section 1201 (a)(2) or (a)(3), a 
         23   circumvention device must decrypt; and we concede 
         24   that DeCSS does do decryption.  However, it has to 
         25   do that without the authority of the copyright 

                                                               40
          1   owner. 
          2                If DeCSS is -- if DeCSS indeed has the 
          3   authority of the copyright owner, the DeCSS is not 
          4   a circumvention device, and this case is moot. 
          5                So, where does the authority come 
          6   from?  In fact, in the house of -- a House of 
          7   Representatives statute in 1998, they ruled that -- 
          8   they wrote that an individual would not be able to 
          9   circumvent in order to gain unauthorized access to 
         10   a work, but would be able to do so in order to make 
         11   fair use of the work which he or she has lawfully 
         12   acquired. 
         13                So let's say I have the matrix in DVD, 
         14   first I take the green pill, then I go put it into 
         15   my computer and I start with DeCSS.  By the 
         16   statute, I've already lawfully acquired the matrix.  
         17   DeCSS has nothing to do with whether I've lawfully 
         18   acquired it or not.  It can't help me lawfully 
         19   acquire it in any way. 
         20                So, by the statute I also have 
         21   authority to make fair use of the matrix how I 
         22   want.  I can go and write software code to analyze 
         23   video frames, to do video searching or make any 
         24   other use that I want that is legal for any other 
         25   purpose. 

                                                               41
          1                So we see that statutorily, authority 
          2   is granted.  Well, perhaps, then, you might say, 
          3   well, it has to be expressed by the copyright 
          4   owner.  In fact, the District Court, in the middle 
          5   of the trial testimony, preemptively ruled that it 
          6   was a matter of law, not fact, of whether the user 
          7   had authority or not.  So we were unable to go into 
          8   the facts of whether authority was expressly 
          9   granted or not. 
         10                In fact, we would have found that no 
         11   authority is granted at any time by anyone to play 
         12   any DVDs.  So, I have my matrix -- at this time I'm 
         13   going to take the red pill -- and I bring it into 
         14   my DVD player.  Well, I don't have authority to do 
         15   that because I never received authority from the 
         16   DVD copyright owners. 
         17                So, if the Court was to rule that one 
         18   requires expressed authority, then 11 million users 
         19   of DVDs or whatever the number might be would then 
         20   be illegally using a DVD player, licensed by the 
         21   DVD authorities, as a circumvention device.  Of 
         22   course this can't be the case. 
         23                So, for -- maybe it's more implicit in 
         24   where the authority comes from. 
         25                Well, when I paid my $26, what did it 

                                                               42
          1   go for?  I got this piece of plastic.  I think it's 
          2   because I can now play my DVD.  It didn't say 
          3   otherwise.  It didn't say I couldn't play my DVD.  
          4   It didn't say I couldn't use DeCSS.  It didn't say 
          5   I could use a DVD player. 
          6                JUSTICE ALLEN:  But this of course 
          7   falls under the copyright work which falls under 
          8   copyright law and, so, by the terms of DMCA it's 
          9   still illegal to circumvent regardless of whether 
         10   you have authority or not to view it or even to 
         11   perform the work (unintelligible).
         12                MR. TAUBERER:  Well, for a device to 
         13   be a circumvention device, it must be -- for a 
         14   device to be classified as a circumvention device, 
         15   whether it's primarily for that purpose or not, it 
         16   has to be used without the authority of the 
         17   copyright owner.  In fact, one of the tests would 
         18   be that it has to be primarily used as a, let's 
         19   say, a decryption device without authority of the 
         20   copyright owner.  And we argue that there is 
         21   authority there. 
         22                JUSTICE ROSS:  Are you now arguing 
         23   that this is not a circumvention device at all?
         24                MR. TAUBERER:  Correct. 
         25                JUSTICE ROSS:  Okay.

                                                               43
          1                MR. TAUBERER:  Perhaps the wording of 
          2   the DMCA would have been more clear if authority 
          3   was placed elsewhere.  However, it's placed in the 
          4   definition of circumvention device.  So, therefore, 
          5   with authority, it is not a circumvention device. 
          6                One other thing.  Going back to the 
          7   Honorable Allen's statement; it sounded as if it 
          8   was leaning toward, well, it would require express 
          9   privileges.  So, for a device -- if you were to say 
         10   that -- you were going in the direction, I believe, 
         11   that this applies to every work.  And, so, it 
         12   seemed as if you were saying that you would need 
         13   express permission. 
         14                JUSTICE ALLEN:  (Unintelligible) DMCA?
         15                MR. TAUBERER:  Correct.  For 
         16   authority.  But if it was -- if you need express 
         17   permission, then the 11 million DVD player users 
         18   would also be in violation.  So this isn't where 
         19   the authority has come from. 
         20                JUSTICE KAUKE:  Without express 
         21   permission, are you assuming that you have 
         22   permission to do whatever you want to do with that?
         23                MR. TAUBERER:  By the House of 
         24   Representatives statute, once you've already 
         25   lawfully acquired the DVD, you have the authority 

                                                               44
          1   to make any use you want with it.  It says fair 
          2   use.  But its use would be fair. 
          3                JUSTICE ALLEN:  So basically you would 
          4   require us all to define the terms of fair use as 
          5   (unintelligible).
          6                MR. TAUBERER:  I believe so.  Can you 
          7   say that again? 
          8                JUSTICE ALLEN:  You'd require this 
          9   Court to define fair use.
         10                MR. TAUBERER:  I don't believe it's 
         11   necessary for the Court to relate fair use to 
         12   DeCSS, because the use of DeCSS -- of DeCSS is 
         13   not -- it would be primarily fair use, most likely, 
         14   or predominantly or primarily designed to be for 
         15   fair use.  But you don't necessarily need to define 
         16   what fair use is.
         17                JUSTICE ROSS:  Are you saying the 11 
         18   million users of DVD are doing something illegal 
         19   by --
         20                MR. TAUBERER:  No.  I'm saying that to 
         21   believe that one requires expressed authority to 
         22   have authority is a contradiction because if that 
         23   were the case, then the 11 million users would be 
         24   illegally using their DVD players. 
         25                If there are no other comments or 

                                                               45
          1   questions, I'd like to reserve my time.
          2                JUSTICE DESAUTELS:  The Court will now 
          3   hear from Mr. Vennema.
          4                MR. VENNEMA:  Good afternoon.  My name 
          5   is John Vennema. 
          6                Defendants clearly believe that the 
          7   argument over the nature of authority is the 
          8   centerpiece of their case.  Frankly, we disagree.  
          9   In fact, we maintain, as we have since the 
         10   beginning of this case, that this argument is a 
         11   little more than a rhetorical contortion of the 
         12   DMCA, which is quickly and easily dismissed.  This 
         13   belief is reflected in our limited treatment of the 
         14   issue of authority in our appeal brief and of the 
         15   limited treatment of the issue of authority in 
         16   Judge Kaplan's decision. 
         17                So, case against.  The defendants make 
         18   many arguments about the notion of authority.  
         19   However, they boil down to one simple point.  In 
         20   short, the defendants maintain that the purchase of 
         21   a DVD somehow inherently grants them the authority 
         22   to legally circumvent an electronic protection 
         23   measure.  They have twisted this argument out of 
         24   the provision of the DMCA that defines 
         25   circumvention, as we heard as well, without the 

                                                               46
          1   authority of the copyright -- circumvention, I'm 
          2   sorry, circumvention as decryption occurring 
          3   without the authority of the copyright holder. 
          4                So, rebuttal.  As Judge Kaplan stated 
          5   in his opinion, the argument is sophistry.  It's a 
          6   rhetorical argument.  Kaplan continues:  The DMCA 
          7   proscribes trafficking in technology that decrypts 
          8   or avoids an access control measure without the 
          9   copyright holder consenting to the decryption or 
         10   avoidance. 
         11                Clearly, the copyright holders, the 
         12   studios, which we represent, do not consent to this 
         13   type of decryption, or they would not have 
         14   established an encryption and licensing system in 
         15   the first place.  In fact, this construal [sic] of 
         16   the DMCA provision of not granting encryption 
         17   without the authority of the copyright holder would 
         18   in essence completely truncate the DMCA and the 
         19   entire system of encryption of DVDs in the first 
         20   place. 
         21                Furthermore, if the DMCA had intended 
         22   to provide an exemption for circumvention after the 
         23   content had been purchased, said exemption would 
         24   have been included in the DMCA.  As it stands, it 
         25   is mostly certain not.  In fact, the DMCA makes 

                                                               47
          1   several provisions of what legal circumvention 
          2   measures are present, and are legal in the DMCA, 
          3   makes four or five, I believe; none of which 
          4   include anything having to do with the purchase of 
          5   the content. 
          6                So, the questions.  How is authority 
          7   given?  Authority is granted only with the purchase 
          8   of both the DVD and a licensed DVD player, both 
          9   licensed under CSS.  This granting of authority is 
         10   implicit and relatively easy to understand.  It's 
         11   implicit in the studio's encryption of DVDs and the 
         12   subsequent establishment of a licensing system. 
         13                Once again, why would the studio go to 
         14   the trouble of encrypting DVDs in the first place 
         15   if they intended to use them to be able to encrypt 
         16   them as well.  Clearly, they established the 
         17   licensing and decryption system to maintain a 
         18   specific system of use for the user. 
         19                JUSTICE ROSS:  Are you saying that 
         20   because there are certain things -- certain uses 
         21   that would normally be legal that you can't use a 
         22   licensed player for, that, therefore, they are now 
         23   illegal?
         24                MR. VENNEMA:  Indeed.  That is largely 
         25   the point of the DMCA, we're arguing. 

                                                               48
          1                For instance, consider this:  This 
          2   granting of authority is not vague or 
          3   unsubstantial, as defendants would have you 
          4   believe.  In the same way that password-protecting 
          5   content is clearly a sign that the user does not 
          6   wish the content to be accessed unless they have 
          7   given that user the specific password. 
          8                So --
          9                JUSTICE ALLEN:  In this case, you're 
         10   saying it's legal for the player to view the movie.
         11                MR. VENNEMA:  No. 
         12                JUSTICE ALLEN:  The encryption 
         13   (unintelligible) you're saying -- you're making the 
         14   legality of allowing the player to --
         15                MR. VENNEMA:  No, I'm not in any 
         16   way --
         17                JUSTICE ALLEN:  Not debating legality 
         18   of the user --
         19                MR. VENNEMA:  No.  The player is 
         20   perfectly legal because the creator of the content, 
         21   the studios, have granted the players licensed 
         22   access to decrypt that, therefore granting their 
         23   authority in all conceivable ways to decrypt that 
         24   content, in the specific ways explained under the 
         25   issues of that license. 

                                                               49
          1                No such license has been issued to the 
          2   user.  The user has been given access to the 
          3   material that we decrypted under certain 
          4   circumstances, with a licensed DVD player, easily 
          5   available anywhere, and any user who wishes to 
          6   purchase a DVD and purchase a DVD player will gain 
          7   full use of --
          8                JUSTICE ALLEN:  Now, you're saying any 
          9   user who has a license to a DVD player can play any 
         10   DVD because the user has signed nothing or has -- 
         11   under no circumstances is he restrained by a 
         12   password or anything like that, as may be the 
         13   player which is restricted by an encryption scheme.
         14                MR. VENNEMA:  The user has been 
         15   granted the use of the DVD in the DVD player.  It's 
         16   as simple as that.  The argument doesn't get much 
         17   more complicated.  Because, frankly, anything 
         18   further than that requires breaking an encryption 
         19   scheme.  And breaking an encryption scheme is 
         20   clearly illegal under the DMCA. 
         21                So, what does this authority allow -- 
         22   we've covered this somewhat, but what does this 
         23   authority allow the user to do with a DVD?  The 
         24   authority allows the user to view and use their 
         25   licensed DVD with their licensed DVD player.  This 

                                                               50
          1   authority obviously does not allow a user to do 
          2   anything that requires the unlicensed decryption of 
          3   a DVD, except where provided in the DMCA. 
          4                These terms are, once again, 
          5   imminently implicit in the studio's system of 
          6   encrypting DVD systems in the first place. 
          7                So, frankly, the issue is as simple as 
          8   that.  Any other construal [sic] of the DMCA's 
          9   policies would, as we have said, on the most 
         10   fundamental level, eviscerate the trafficking 
         11   proscriptions of the DMCA and eliminate the 
         12   proscription for -- and eliminate the protection 
         13   for which Congress enacted them in the first place. 
         14   If any user could purchase a DVD and willfully 
         15   break the encryption scheme and do with that pure 
         16   initial content what they would, the DMCA would 
         17   have no tangible purpose whatsoever. 
         18                Just to quickly address one point 
         19   that -- we may have covered it, but since I'm 
         20   almost certainly not going to use all of my time, 
         21   because, frankly, this argument is fairly simple, I 
         22   believe.  The appellants brought up a point that 
         23   it's vague as to whether even viewing it is legal 
         24   and that there's nothing express.  Once again, the 
         25   express granting permission to view the DVD with a 

                                                               51
          1   DVD player is very clear and implicit.  No regular 
          2   user would argue anything otherwise. 
          3                I believe that's all there is to it.
          4                JUSTICE ROSS:  I have one quick 
          5   question.  When did some fair uses become 
          6   unauthorized?
          7                MR. VENNEMA:  This discussion is not 
          8   about fair use at the moment.  I'm going to leave 
          9   that to my colleagues.
         10                JUSTICE ROSS:  I'm asking when some of 
         11   these fair uses became unauthorized, since we're 
         12   talking about authority.?
         13                MR. VENNEMA:  These fair uses became 
         14   unauthorized when they required breaking a lawful 
         15   encryption scheme.  It's illegal under the DMCA.
         16                JUSTICE ROSS:  So you're saying that 
         17   we should get rid of fair use because the MPAA 
         18   placed an -- the studios placed an encryption 
         19   scheme on the DVDs?
         20                MR. VENNEMA:  I'm not saying we should 
         21   get rid of fair use.  I'm saying we should follow 
         22   the laws of the DMCA which provide that one cannot 
         23   break an encryption scheme, which is what's 
         24   occurring right here.
         25                JUSTICE DESAUTELS:  We should allow 

                                                               52
          1   technology to prevent fair use.
          2                MR. VENNEMA:  Again, I'm not arguing 
          3   fair use.  I'm arguing the specific issue of 
          4   authority, which is truncated and misconstrual 
          5   [sic] of a specific DMCA line. 
          6                I will leave fair use argument to my 
          7   colleague. 
          8                JUSTICE KAUKE:  If there are people 
          9   out there that feel they have the right to encrypt 
         10   the digital content, are these users aware of their 
         11   rights of authority as -- which you point out to be 
         12   so clear-cut and obvious?
         13                MR. VENNEMA:  The users who wish to 
         14   decrypt their DVD must be aware of the law.  Our 
         15   law does not give any credence to the defense that 
         16   I was unaware of the law.  And the law is, quite 
         17   simply --
         18                JUSTICE ALLEN:  In this circumstance 
         19   the laws aren't as explicit; it's implicit --
         20                MR. VENNEMA:  The law is always 
         21   explicit.  You have to be aware of the law.  You 
         22   can't use the argument that you're not aware it was 
         23   illegal to break an encryption scheme. 
         24                JUSTICE ALLEN:  You could argue that 
         25   they were not aware -- that they did not have the 

                                                               53
          1   authority to break the encryption scheme because 
          2   they couldn't easily construe themselves as having 
          3   the authority of breaking the encryption scheme --
          4                MR. VENNEMA:  I would argue that it's 
          5   still breaking the encryption scheme, no matter 
          6   which way you look at it.  There's nothing explicit 
          7   anywhere that says anything about buying the DVD, 
          8   granting the authority to break the encryption 
          9   scheme.  It's a constructed argument out of 
         10   nothing. 
         11                JUSTICE ALLEN:  There's nothing 
         12   anywhere in the DMCA that says -- that defines the 
         13   term authority and what is given to, what authority 
         14   is given to the (unintelligible).
         15                MR. VENNEMA:  The term authority -- 
         16   the authority is granted under the terms -- 
         17   everything with the DVD applies to the terms of 
         18   DMCA.
         19                JUSTICE DESAUTELS:  The Court will 
         20   hear from Mr. Tauberer.
         21                MR. TAUBERER:  All right.  I would 
         22   like to, should it please the Court, go through all 
         23   the arguments one by one and just refute them all 
         24   because they're all refutable. 
         25                I'm going to start at the bottom with 

                                                               54
          1   the implicitly expressed authority that was 
          2   claimed; if it's expressed, then it's not implicit, 
          3   and if it's implicit, then it's not expressed. 
          4                What the MPAA is asking you to do is 
          5   to take the implicit authority that the movie 
          6   players want to give to only the DVD players, and 
          7   have the law recognize what they want as what the 
          8   law should be.  This can't be done because it's a 
          9   clearly or a simple matter.  This isn't sophistry.  
         10   You can't say, well, it's a made up argument.  We 
         11   have to analyze this. 
         12                Okay.  Starting at the top now.  
         13   Limited treatment.  The District Court looked at 
         14   this very limited and so did the prosecution.  In 
         15   fact, in their appeal brief they dropped this point 
         16   entirely.  And while this is not a minor fact, we 
         17   have to look at where the authority comes from.  
         18   Because the District Court judged this, it is more 
         19   important that you look at the authority and rule 
         20   on whether it is important or not. 
         21                Nextly, the MPAA claims that the 
         22   intent was not to grant consent.  But the District 
         23   Court, during the trial, made it very clear that it 
         24   wasn't a matter of fact that was important, it was 
         25   a matter of law.  If we had the trial transcript, 

                                                               55
          1   we could find this, but no one has. 
          2                In fact, their intent is, by the 
          3   District Court's ruling, not relevant.  So, once 
          4   again, you have to look at this and make another 
          5   judgment, not relying on the District Court. 
          6                Nextly, the DMCA had intended, they 
          7   claim, to not allow circumvention -- to never allow 
          8   circumvention.  They claim that if the DMCA was to 
          9   allow this, then they would have said so.  Well, in 
         10   the next line it says so, that it should not impede 
         11   on fair use which will be addressed in the next 
         12   topic.  So this is something that can't be just 
         13   accepted. 
         14                Nextly, why the MPA uses DeCSS.  They 
         15   claim that, well, without -- why would they need to 
         16   use DeCSS if it wasn't protected by law.  Well, 
         17   just because they want it to be protected by law 
         18   and maybe hope it is, that doesn't mean it has any 
         19   bearing on the actual law.  So -- okay. 
         20                Nextly, the MPA -- Mr. Vennema 
         21   explicitly stated that the MPA explicitly granted 
         22   license to players to play the DVDs.  However, this 
         23   is perhaps irrelevant because it's the authority of 
         24   the user in question and, so, to say that the user 
         25   has authority based on the authority granted from 

                                                               56
          1   the MPA to the DVD players, therefore gives some 
          2   legal meaning to the authority granted to the 
          3   users, is like saying some sort of a personal 
          4   contract between two people is legally binding on 
          5   other people who have not signed a contract. 
          6                It's irrelevant.  The license between 
          7   the MPA and DVD players is completely irrelevant.
          8                JUSTICE ALLEN:  Why do you construe 
          9   that the authority might or might not be given to 
         10   the owner of the DVD, purchaser of the DVD?  You 
         11   could also -- it's just as easy to go the other 
         12   way, that because it wasn't explicitly stated, that 
         13   they did have authority to decrypt it, they don't 
         14   have authority to decrypt it because, quite 
         15   frankly, it's not necessarily (unintelligible).
         16                MR. TAUBERER:  That's true.  However, 
         17   they stated that no expressed authority was ever 
         18   granted to DVD player use or to DeCSS use.  And, 
         19   so, they're saying that most -- in fact, all of 
         20   their users are in violation of the DMCA. 
         21                So, to claim that it requires 
         22   expressed authority does not make sense. 
         23                JUSTICE MANDECKI:  How far do you 
         24   expect this Court to go?  Obviously Mr. Vennema 
         25   makes a good point by saying that using DVDs, it's 

                                                               57
          1   implicit that you just pop it in and watch a movie.  
          2   You expect us to say it's okay to do the DeCSS 
          3   thing?
          4                MR. TAUBERER:  The legality of using a 
          5   DVD player is equivalent to the legality of using 
          6   DeCSS, because there's no distinction between the 
          7   two. 
          8                If that answers your question.  I'm 
          9   not sure I understood the question. 
         10                JUSTICE ROSS:  Doesn't DeCSS also 
         11   enable you to infringe copyright in a sense, where 
         12   a licensed player doesn't?
         13                MR. TAUBERER:  DeCSS can in no way 
         14   enable you to violate copyright any more than a DVD 
         15   player can. 
         16                For a DVD player, there is an analog 
         17   output.  You can go and make copies of that output 
         18   as many times as you want and violate a copyright 
         19   act.  Using DeCSS, you could use DeCSS to make 
         20   copies of it.  But no different than for using a 
         21   DVD player. 
         22                Furthermore, the fact that one can use 
         23   a device to -- that is not fair use, does not 
         24   necessarily mean that the device is therefore a 
         25   circumvention device.  In fact, it's not related at 

                                                               58
          1   all in any way.  For it to fall into the DMCA's 
          2   provision, it would have to be primarily designed 
          3   for that, or with marginal other uses. 
          4                And, so, we could debate that another 
          5   time.  But there are no -- it's not primarily 
          6   designed for infringement and there are certainly 
          7   many other uses that are testimony.
          8                JUSTICE DESAUTELS:  Thank you.
          9                MR. TAUBERER:  Thank you.
         10                JUSTICE DESAUTELS:  The Court will now 
         11   hear from Mr. Viventi.
         12                MR. VIVENTI:  Ladies and gentlemen of 
         13   the Court, my name is John Viventi.  I'm here today 
         14   on behalf of 2600 Magazine.  I intend to clarify 
         15   fair use, its relations to the DMCA, and its 
         16   application to DeCSS.  First, let's examine the 
         17   provisions of copyright law regarding fair use. 
         18                I quote the Copyright Law of the 
         19   United States of America, Chapter 107, Limitations 
         20   on exclusive rights:  Fair use.  The fair use of a 
         21   copyrighted work, including such use by 
         22   reproduction in copies or phonorecords or by any 
         23   other means specified by that section, for purposes 
         24   such as criticism, comment, news reporting, 
         25   teaching, scholarship, or research, is not an 

                                                               59
          1   infringement of copyright.  In determining whether 
          2   the use made of a work in any particular case is a 
          3   fair use, the factors to be considered shall 
          4   include the purpose and character of the use, 
          5   including whether such use is of a commercial 
          6   nature or is for nonprofit educational purposes; 
          7   the nature of the copyrighted work; the amount and 
          8   substantiality of the portion used; and the effect 
          9   of the use upon the potential market for the value 
         10   of the copyrighted work.  Specifically, I draw 
         11   attention to news reporting and scholarly research, 
         12   which we'll come back to later. 
         13                I continue.  Fair use is rooted in the 
         14   Constitution.  The fair use doctrine permits courts 
         15   to avoid rigid application of the copyright statute 
         16   when, on occasion, it would stifle the very 
         17   creativity which that law is intended to foster. 
         18                This is taken from a court case, 
         19   Stewart versus Abend. 
         20                Furthermore, it is -- the Court reads:  
         21   Fair use has been viewed by courts as a safety 
         22   valve that accommodates the exclusive rights 
         23   conferred by copyright with the freedom of 
         24   expression granted by the First Amendment.  Another 
         25   Court case, Universal versus Nation Enterprises...  

                                                               60
          1   Sorry about that. 
          2                Furthermore, fair use is maintained by 
          3   DMCA.  The DMCA cannot be utilized in any way to 
          4   rob consumers of their right to fair use.  Congress 
          5   inserted specific provisions into 1201 of the 
          6   copyright statute to prevent interpretations that 
          7   would hurt these vital constitutional interests.  
          8   In particular, nothing in this section shall affect 
          9   rights, remedies, limitations or defenses to 
         10   copyright infringement, including fair use under 
         11   the title.  Therefore, it remains to be proven that 
         12   DeCSS is a necessary tool to facilitate fair use on 
         13   DVDs. 
         14                I'd like to cite the court case, Time, 
         15   Incorporated versus Bernard Geis Associates.  A 
         16   researcher intent on criticizing the conclusions of 
         17   the Warren Commission's inquiry into the 
         18   assassination of President Kennedy reproduced six 
         19   frames of the famous Zapruder film of the shooting 
         20   in his book.  Plainly, a mere verbal description of 
         21   the frames would have been a poor substitute for 
         22   the actual historical evidence.  Therefore, the 
         23   Court concluded that the copying was allowed by the 
         24   fair use doctrine. 
         25                If this -

                                                               61
          1                JUSTICE ALLEN:  (Unintelligible) why 
          2   should DeCSS necessarily -- why could you not take 
          3   a photograph of a TV screen, for instance, or a 
          4   projector screen?  Or make a tape recording of what 
          5   was going on in the movie?  Why do you need to be 
          6   able to decrypt the movie?
          7                MR. VIVENTI:  Actually, I'd like to 
          8   continue.  I'll get to that. 
          9                Basically, if this film had only been 
         10   available on DVD format, the author would not have 
         11   been able to obtain those frames for his 
         12   presentation -- his book, actually, despite the 
         13   Court's ruling that he had every right to do so. 
         14                Many times photographing a TV screen 
         15   is very difficult in regards to the refresh rate of 
         16   the monitor itself.  Recording audio tracks is very 
         17   difficult.  It's much easier to take the actual 
         18   frame from the film in the way that it has been 
         19   done for generations as of right now.  You have a 
         20   copy of the frame and you can use it. 
         21                Therefore, DeCSS is required for the 
         22   balance of copyright monopoly and free expression.  
         23   Without it, fair use is impossible with the current 
         24   DVD technology that's been presented by the MPAA.
         25                JUSTICE ALLEN:  What if the MPAA makes 

                                                               62
          1   available on the Internet a service provider for a 
          2   small fee or for no fee whatsoever, you could apply 
          3   for and receive small clips of (unintelligible).
          4                MR. VIVENTI:  If they were to provide 
          5   a utility, a comparable useful utility as useful as 
          6   DeCSS, I'm sure it would be satisfied, at least in 
          7   respect to fair use.  As of right now there is no 
          8   means for accessing all fair use criteria. 
          9                Among them, there is -- let's see.  
         10   The need for access to the entire movie in regards 
         11   to research involving video searching and other 
         12   scholarly works that require large portions of 
         13   video not necessarily to be accessed in any 
         14   specific way, but as a whole. 
         15                The District Court admitted that its 
         16   interpretation of 1201 nearly eliminates all fair 
         17   use entirely by leaving, and I quote, 
         18   technologically unsophisticated persons who wish to 
         19   make fair use of encrypted copyrighted works 
         20   without the technical means of doing so. 
         21                The Court later went on to list 
         22   several fair uses that would be impacted by its 
         23   ruling, including quotations from the script by a 
         24   movie reviewer; broadcast of an excerpt of a scene 
         25   to illustrate a review; performing portions of the 

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          1   sound track by musicologists; and making clips of 
          2   scenes by a film scholar to make a comparative 
          3   point.  All these uses have been granted under the 
          4   fair use statute of the copyright law and are now 
          5   being removed by the DMCA in a way that was not -- 
          6   the DMCA was never intended to allow. 
          7                Countless other cases have been 
          8   presented in the written briefs where fair use was 
          9   prohibited by the CSS architecture.  These cases 
         10   further strengthen the legitimate and 
         11   non-infringing uses of DeCSS.  The public interest 
         12   in these uses of DeCSS is substantial and is 
         13   essential to progress. 
         14                Therefore, I encourage you to rule in 
         15   favor of technological progress and allow the 
         16   publishing of valid encryption research. 
         17                Thank you.
         18                JUSTICE KAUKE:  I have a question. 
         19                If you were looking, for example, at a 
         20   20 second clip of a movie as we witnessed in 
         21   matrix, would it not be possible to go out and buy 
         22   the VHS cassette which is more easily copied and 
         23   get the same 20 second clip with comparable 
         24   difference between -- for the purposes of what 
         25   you're examining, the difference would be minimal.  

                                                               64
          1   And why -- I guess I'm asking, why is digital 
          2   quality necessary?
          3                MR. VIVENTI:  If you're doing research 
          4   that involves specific compression involved in a 
          5   movie, say you're interested in researching MPEG 
          6   layer two applications on certain types of video, 
          7   you necessarily need to access that digital data. 
          8                Furthermore, in the future, if movies 
          9   are no longer released on VHS tape, and they're 
         10   only released on DVD, you may not have access to 
         11   certain clips, you may not have that ability.
         12                JUSTICE ALLEN:  In terms of DMCA, 
         13   Congress specifically banned decryption, and while 
         14   that is not subject to fair use, what makes 
         15   decryption any more valid in terms of -- without 
         16   regard to fair use?  I mean, apart from statutory 
         17   fair use -- I don't know how to put this. 
         18                Never mind.
         19                MR. VIVENTI:  Were you trying to refer 
         20   to the use of -- how the use of DeCSS has any 
         21   relevance outside of fair use? 
         22                JUSTICE ALLEN:  Yes.
         23                MR. VIVENTI:  I'm basically not 
         24   arguing that there's any use outside of DeCSS, I 
         25   mean that there's any legal backing for -- by use 

                                                               65
          1   of DeCSS outside of fair use.  That is entirely -- 
          2   the legal aspect of DeCSS is completely involved in 
          3   fair use.  Without it, it is not capable to utilize 
          4   your rights of fair use.
          5                JUSTICE DESAUTELS:  The Court will 
          6   hear from Mr. Blatz.
          7                MR. BLATZ:  Good afternoon.  My name 
          8   is John Blatz.  I represent the Motion Picture 
          9   Studios. 
         10                In Mr. Viventi's argument, he claims 
         11   that, first, people have the right to fair use.  
         12   And that since DeCSS software facilitates fair use, 
         13   then it should therefore be legal to traffic in the 
         14   DeCSS software. 
         15                He goes on to list several possible 
         16   uses that third parties besides Corley could have 
         17   for the DeCSS program which could possibly be 
         18   considered fair use under the DMCA.  However, it's 
         19   not these people that are on trial. 
         20                This trial is about Mr. Corley.  And 
         21   he is not being accused of infringement.  He's 
         22   accused of trafficking in circumvention tools.  As 
         23   Mr. Viventi quotes from section 1201 (c)(1) of the 
         24   DMCA, a fair use is a defense, but only for 
         25   copyright infringement.  Mr. Corley is not being 

                                                               66
          1   sued for infringement.  He's being sued for 
          2   trafficking. 
          3                The DMCA explicitly disallows 
          4   trafficking -- offering to the public circumvention 
          5   devices in section 1201 (a)(2) and section 1201 
          6   (b).  It disallows any circumvention device whose 
          7   primary purpose is to circumvent access and whose 
          8   other uses are not commercially significant. 
          9                JUSTICE ALLEN:  By providing DeCSS, 
         10   you're enabling users to exercise their fair use 
         11   rights.
         12                MR. BLATZ:  That's correct.  However, 
         13   this case is not required -- this case is not 
         14   about -- it's not about fair use rights to 
         15   circumvent access controls.  It's about trafficking 
         16   and tools that allow you to circumvent the access.
         17                JUSTICE DESAUTELS:   I believe what 
         18   they're arguing is that because DeCSS enables 
         19   consumers to exercise their fair use rights, it 
         20   should be allowed to be trafficked.
         21                MR. BLATZ:  However, that's contrary 
         22   to the letter of the law and to legal precedent. 
         23                Congress explicitly decided -- 
         24   Congress purposely decided not to include such a 
         25   provision because it would undermine the very 

                                                               67
          1   purpose of the DMCA, which is to encourage 
          2   production of copyrighted works.
          3                JUSTICE DESAUTELS:  Are you saying, 
          4   then, that the DMCA is allowing technology to limit 
          5   fair use?
          6                MR. BLATZ:  That's true.  The DMCA 
          7   does not restrict fair use.  Users -- people, like 
          8   Mr. Viventi claim, may have the rights to make 
          9   scholarly uses and other such uses of copyrighted 
         10   works.  If they use DeCSS to do so, that would be 
         11   legal, perhaps.  But that's not what's at issue.  
         12   What's at issue is, can this be offered to the 
         13   general public? 
         14                Mr. Corley is offering these tools to 
         15   the general public without regard for what they're 
         16   using it for.
         17                JUSTICE DESAUTELS:  How else can the 
         18   general public exercise its fair use rights if it 
         19   doesn't have access to DeCSS?
         20                MR. BLATZ:  I'm not arguing that 
         21   people who are going to make fair use of 
         22   copyrighted work should not have access to DeCSS or 
         23   other such things.  I'm arguing that --
         24                JUSTICE ALLEN:  Given that DeCSS does 
         25   not enable any fair use exemptions whatsoever, how 

                                                               68
          1   does the DMCA propose to enable fair use? 
          2                MR. BLATZ:  A person who wishes to 
          3   make fair use of a copyrighted work is allowed to 
          4   break the encryption in order to do so.  If they 
          5   come -- if a program such as DeCSS were made 
          6   available to them by some means whereby the 
          7   government agreed -- the government approved of 
          8   their use, and it was understood that they would 
          9   only be using it for purposes outlined in the DMCA, 
         10   such distribution would be acceptable; however, not 
         11   to the general public. 
         12                JUSTICE ALLEN:  You would hold that 
         13   generally fair use rights in this particular 
         14   instance are limited to technically sophisticated 
         15   people and people who have the knowledge and 
         16   contacts to be able to gain access to DeCSS code?
         17                MR. BLATZ:  Fair use rights are given 
         18   to anyone who has the right to do so.  The DMCA 
         19   does not require people -- dot not require 
         20   manufacturers to facilitate the use of their fair 
         21   use rights. 
         22                If the Court has no further questions, 
         23   I believe I'm finished.
         24                JUSTICE DESAUTELS:  Okay.  Mr. 
         25   Viventi.

                                                               69
          1                MR. VIVENTI:  I maintain that the fair 
          2   use is not possible under the current CSS 
          3   encryption algorithm; and that since the entire 
          4   public is granted rights to fair use, it is 
          5   necessary the private public also be granted rights 
          6   to access its fair uses, and to accomplish this, 
          7   DeCSS must be trafficked, it must be provided to 
          8   the people. 
          9                The MPA scheme of government control 
         10   on permission to utilize its fair use goes against 
         11   copyright's natural assumed fair use qualities, and 
         12   would impede the flow of educational and scholarly 
         13   works with undue process if everyone had to apply 
         14   for a license to make use of their own rights. 
         15                Therefore, I maintain that it should 
         16   be possible to distribute DeCSS in accordance with 
         17   the necessity for fair use. 
         18                JUSTICE KAUKE:  Can 2600 guarantee 
         19   that everyone that has access to DeCSS from their 
         20   website is using it for purposes of studying and 
         21   research?
         22                MR. VIVENTI:  I don't believe that 
         23   it's our responsibility to control what uses people 
         24   make of their own -- of their software.  That is 
         25   their entire legal responsibility.  Because 

                                                               70
          1   everyone is granted rights to this fair use 
          2   material, it is not -- we can't deny rights to some 
          3   people and not others on the basis of whether or 
          4   not we believe they are conducting sound 
          5   educational research or not. 
          6                JUSTICE MANDECKI:  Do you not agree 
          7   that the majority of people who have the 
          8   availability of using DeCSS are using it for the 
          9   uses that are potentially dangerous to greater 
         10   society?
         11                MR. VIVENTI:  We don't have any 
         12   information related to specific numbers of people 
         13   who are using it for any specific purpose.  
         14   However, if there is any significant use for DeCSS 
         15   that is non-infringing, it should not be allowed to 
         16   ban its trafficking or use because of that specific 
         17   use, and, irregardless of its nonlegal uses.
         18                JUSTICE DESAUTELS:  Thank you, 
         19   Mr. Viventi. 
         20                Okay.  Court is adjourned.
         21                (Whereupon Court was adjourned at 
         22   3:15 P.M.)
         23   
         24   
         25                     *  *  *  *  *  *

                                                               71
          1                  C E R T I F I C A T E
          2   
          3                    
          4           I, DOREEN FOX KRENCHICKI, License No. 
          5   XI00821, a Notary Public and Certified Shorthand 
          6   Reporter of the State of New Jersey, do hereby 
          7   certify that the foregoing is a true and accurate 
          8   transcript of the notes as taken stenographically 
          9   by and before me at the time, place and on the date 
         10   hereinbefore set forth.
         11           
         12                I DO FURTHER CERTIFY that I am neither 
         13   a relative nor employee nor attorney nor counsel of 
         14   any of the parties to this action, and that I am 
         15   neither a relative nor employee of such attorney or 
         16   counsel, and that I am not financially interested 
         17   in the action.  
         18   
              
         19   
              
         20                               
              DOREEN FOX KRENCHICKI,
         21   CSR, RPR, CM, CRR
              
         22   
              
         23   
              Dated: April 25, 2001 
         24   
         25