Under pressure from the entertainment industry, Congress passed a bill in 1998 to restrain Internet piracy. The law made it illegal to break the digital locks shielding a piece of intellectual property -- an electronic book, say, or a CD or DVD.
Just as Congress hoped, the Digital Millennium Copyright Act is proving a potent weapon. The recording industry, for example, is successfully using the law to force an Internet service provider to surrender the name of an alleged pirate.
But Hollywood isn't the only industry that can wield this sword. Companies that have nothing to do with the entertainment world have discovered the law's broad reach.
Dow Chemical Co. used the DMCA to shut down a Web site that attacked the company. Wal-Mart Stores Inc. and other retailers invoked it to remove the details of forthcoming sales from a site for bargain hunters.
Apple Computer Inc. cited the DMCA to stop one of its dealers from producing and selling software that allowed Apple's new DVD-burning technology to be used on earlier models of its Macintosh computers. Apple didn't explain its motivation, but commentators noted that upgraded older machines meant fewer sales of new Macs.
"The DMCA started with the noblest of intentions, but it is becoming the bright shiny new toy of enterprises looking for a way to stifle competition and to control what they might consider unfavorable information," said Mike McGuire, a policy analyst with research firm GartnerG2.
If the DMCA isn't modified, intellectual property experts warn, companies could claim violations when competitors made compatible products that linked up with their own. The result, they say, would encourage monopolies and severely curtail consumer choice.
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Lawsuits Filed
The first lawsuits that use the DMCA in this fashion already have been filed.
In a case that is roiling the $40-billion printer market and could establish a precedent for many other industries, printer manufacturer Lexmark International Inc. is using the DMCA to sue Static Control Components, a North Carolina company that helps small printer-supply firms compete with Lexmark.
Lexmark claims that Static Control has violated its intellectual property by duplicating a special security device that links Lexmark's printers and its toner cartridges.
