The court rejected the claim. It reviewed the facts and holding of the I.M.S. case
discussed in subsection j. above, and found that the case was correctly decided.^1148 The court
therefore ruled that “using a username/password combination as intended – by entering a valid
username and password, albeit without authorization – does not constitute circumvention under
the DMCA.” The “technological measure” employed by Egilman had not been “circumvented,”
but rather merely utilized.^1149
(xvi) Macrovision v. Sima Products Corp.In Macrovision v. Sima Products Corp.,^1150 the court held that the defendant’s products,
which eliminated Macrovision’s Analog Copy Protection (ACP) signals imprinted on DVDs
containing copyrighted works to prevent the copying of the DVDs, violated the anti-
circumvention provisions. The ACP system inserted additional information in the non-visible
portion of the analog signal, the practical effect of which was to render videotaped copies of the
analog signal so visually degraded as to be unwatchable. The defendant’s devices eliminated
Macrovision’s ACP from an analog signal. The removal function was effectuated by a single
chip, usually the SA7114 chip from Philips. Macrovision contended, and Sima did not dispute,
that Sima’s devices could be fitted with an alternate chip manufactured by Philips that, under
license from Macrovision, would recognize the ACP and not allow for its circumvention.^1151
Sima contended that its devices were intended primarily to allow the consumer to make
“fair use” backup copies of a DVD collection. The court noted, however, that although the
DMCA provides for a limited “fair use” exception for certain users of copyrighted works under
Section 1201 (a)(2)(B), the exception does not apply to manufacturers or traffickers of the
devices prohibited by Section 1201(a)(2).^1152
Sima argued that the “primary purpose” of its devices was not circumvention. The court
rejected this argument, noting that, although some of the devices had some auxiliary functions,
Sima did not argue that it was necessary for the device to be able to circumvent ACP in order to
perform those functions. Nor did Sima argue that using the Macrovision-licensed Philips chips
would prevent the devices from performing the auxiliary functions or facilitating the copying of
non-protected works, such as home videos. Accordingly, the devices had only limited
commercially significant purposes or uses other than circumvention.^1153 The court also noted
that Sima had touted on its web site the devices’ capability of circumventing copy protection on
copyrighted works. And the DMCA does not provide an exception to the anti-circumvention
provisions for manufacturers of devices designed to enable the exercise of fair use rights.
Finally, the court noted that in any event Sima had cited no authority, and the court was aware of
(^1148) Id. at 112-14.
(^1149) Id. at 114.
(^1150) 2006 U.S. Dist. LEXIS 22106 (S.D.N.Y. Apr. 20, 2006).
(^1151) Id. at 2-3.
(^1152) Id. at 2-3, 6.
(^1153) Id. at *6-7.