Seems more like arresting someone who never sold stolen goods, but set up a way for a deal to go down. An accessory to a crime, as it were, which I believe is still illegal.
Because the best way to convince a producer to lower the price of their goods is buy lowering the ROI for said producer. That totally works.
I see no problem with this ruling. If you want to see something enough see it in theaters. Don't wanna pay that much? Rent it when it comes to DVD. Still not low enough? Wait for Redbox or Netflix to get it. If that's not low enough for you I doubt you wanna see the film that much.





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