Last summer, a judge ruled against CleanFlicks and some other companies that were "editing" completed movies for sale in certain areas. The issue was that the companies were generally selling these edited movies into highly religious communities -- and they were editing out scenes or words that might offend. While systems that would do this for you automatically in your home are considered legal, the actual service of "cleaning" a DVD is not. This isn't a money question, but an artistic one. The companies in question were buying legitimate copies of the movies and making the edited version and selling both copies together. No one was losing money from this -- and, it can be argued that moviemakers were actually making more money thanks to this service. However, many directors and studios objected to the idea that anyone else should get to make derivative works -- and the court agreed. The latest news, however, is that CleanFlicks and others are back at it, claiming that the "educational" fair use exception is a loophole they can use to keep making these videos. The details aren't at all clear from the AP article on the topic, but unless these videos are being exclusively sold and shown in schools, it seems like they're going to have a tough time supporting educational fair use. If anything, the fact that they searched out a (potentially weak) loophole to do the same thing they were told to stop doing seems likely to just piss off the judge.
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