The technological age brought with it a relatively new phenomenon - rampant copying of copyrighted musical and audio-visual works. As a result, U.S. movie studios encrypt the disks they sell, and streamers of content (and some music distribution companies in the U.S..) have adopted similar protections to prevent unrestrained copying of electronically- delivered copies an area of business called Digital Rights Management, or DRM"). Protecting these works from copying is very important to the production companies and distribution companies; these "assets" are their stock-in-trade, and copiers (they say) are killing them. Tracking down the actual copiers is difficult. So US companies have started to attack those who enable such copying. Clever computer programmers (sometimes called "hackers) create and distribute computer programs and devices that allow others to circumvent or defeat the technological measures the copyright holders use to protect their valuable copyrighted works from copying. In 1998, Congress passed, and the President signed into law, the Digital Millennium Copyright Act (the "DMCA"). Among other things the DMCA provided that "No person shall circumvent a technological measure that effectively controls access to a work protected under this title, or buy, sell or import into the US or otherwise traffic in products that circumvent technological measures designed to protect copyrighted works." Violations of the Digital Millennium Copyright Act carry with them criminal and civil penalties, as well as a right of the copyright owner to seek treble damages for violations You have an old friend (let's call him "Pancho Villa") who lives in Mexico and runs a computer business there. Pancho tells you that he has developed a computer program that permits easy decryption and copying of DVDs, Netflix streams and I-Tunes. His idea is to set up a web site in the Cook Islands (a small island nation in the Pacific Ocean near Micronesia), and sell the decryption programs over the internet. A purchaser will be able to Pancho tells you that he has developed a computer program that permits easy decryption and copying of DVDs, Netflix streams and I-Tunes. His idea is to set up a web site in the Cook Islands (a small island nation in the Pacific Ocean near Micronesia), and sell the decryption programs over the internet. A purchaser will be able to pay him by PayPal, and the consumer can then download the program and start copying anything s/he wants. Pancho explains to you that the Cook Islands have no laws that prevent or prohibit decryption technology, nor are the Cook Islands a party to any treaties with the U.S. Pancho does tell you that Mexico and U.S. have a treaty on copyright protection, but it was made before the DMCA was enacted, and is totally silent on reciprocal enforcement of laws regarding this kind of circumvention technology, so the treaty probably doesn't apply. He points out to you that he (personally) never copies any works, though his device enables others easily to do so. Pancho just received threatening letters from lawyers from Netflix and Universal Studios. Pancho wants you to give him an "eyes-only" memo answering a few specific questions about what might happen when he puts his program up on the net. Pancho thinks he will make a lot of money, but he is concerned about his exposure to a law suit by Netflix and Universal. He said he has two (2) questions. Pancho said he wants 2 one-page memos that have not just answers, but good explanations. "Good explanations," he said, "use and make reference to the materials from the course you took at Baruch." Pancho told you to be concise, clear and organized, and to write professionally and persuasively. He looked especially serious when he said organized"; ... and, now that you think of it, he may have been armed at the time he said it. Pancho just received threatening letters from lawyers from Netflix and Universal Studios. Pancho wants you to give him an "eyes-only" memo answering a few specific questions about what might happen when he puts his program up on the net. Pancho thinks he will make a lot of money, but he is concerned about his exposure to a law suit by Netflix and Universal. He said he has two (2) questions. Pancho said he wants 2 one-page memos that have not just answers, but good explanations. "Good explanations," he said, "use and make reference to the materials from the course you took at Baruch." Pancho told you to be concise, clear and organized, and to write professionally and persuasively. He looked especially serious when he said organized"; ...and, now that you think of it, he may have been armed at the time he said it. 1. If Netflix or Universal sues Pancho in California, is the U.S. court likely to apply the (US) DMCA to Pancho's out-of-U.S. activities? Be sure to discuss the extent to which the U.S. courts will consider the laws of Mexico and/or the Cook Islands in that determination. 2. Pancho has few assets in the US, but he owns a lot property in Mexico. Assume that the U.S. Department of Justice brings a criminal proceeding against Pancho for violation of the DMCA, that Pancho hires lawyers in the U.S. to appear in the U.S. court, that Pancho loses the case, and is fined $10 million by the US government. Will the U.S. government likely be successful in convincing a Mexican court to recognize and enforce (against Pancho's Mexican assets) the U.S. government's judgment for a criminal penalty of $10 million? Make sure your answers reference appropriate reasons and authority