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Pretty sure that law only applies to someone taping something from a source they originally paid for or had rights to. I can't tap into my neighbours cable and "backup" what's coming through his signal, well I can, but it's not legal.
Doing so would be illegal beyond the stealing cable aspect, or tampering with their equipment - because, it would be displaying it to a large audience. Same way bars have to pay a different licensing fee to show a pay per view event in public, or why you can't buy a DVD and sell tickets for people to watch it.
If letting 500 people watch a DVD I purchased is illegal, then why is it okay to share it with 500 strangers on the internet?
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