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FBI nabs worker at DVD company for ripping prerelease blockbusters
(arstechnica.com)
This is a most excellent place for technology news and articles.
And it's crazy how I can link to the actual enforcement agency's FAQ on how they interpret it and you largely ignore it/talk around it because it's inconvenient.
Law enforcement goes after distributors instead of downloaders for the same reason they go after drug traffickers far more than regular possession: it's easier to prove, penalties are higher, and it does more to chill the activity they want to discourage.