Another example of convergence making DMCA outdated?

A small company in Mass., US, has begun selling IPODs with movies from the DVDs purchased by their new owners uploaded. On the face of it, such sales of IPODs with copyrighted and tech protected DVD movies have breached the DMCA provisions. However interestingly the business continues to do this despite the legal risk. Apparently the owners of the business argue that the DMCA is outdated law and claim that moving the content onto the device is a one-way transfer, which since the purchaser gets both the original and the copy it is legal under their fair use provisions of their Copyright law. Will content owners sit by and less this continue? Keep a look out for updates here.

TVMyPod ventures into copyright gray area CNET News.com