I think the bigger problem is the criminalization of breach of contract. Sometimes breach of contract (and the possibility of requisite damagfes) is the most economically efficient solution. When a user breaches a contract term that is not directly associated with core copyright rights (17 usc 106 rights), or a term purporting to limit sec. 107 fair use rights, or non-core copyright DRM protected purportedly under sec. 1201 or 1202), the criminalization of such breaches of contract create a huge deadweight loss for consumers, who otherwise would benefit (and havce benefitted for 200 years) from the gray area of potential fair uses, development of new uses and new technologies, and the threat of criminal sanction for developing the next big thing.

I continue to believe that the DMCA, more than anything else, is the continuing death knell to independent technology development in the US.

http://lists.essential.org/pipermail/a2k/2005-October/000657.html

http://www.ippr.org.uk/publicationsandreports/publication.asp?id=297