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Admin, thats pretty much as things stand right now, as i understand them as well. Might i just add that at this very moment, as i type. Both Sound Choice, and Chartbuster, just to list two, both consider "Format Shiffting" as being illegal. As i have read the legal suit, not one lawsuit was brought against a kj using illegal disc, all had format shiffted. I tend to think both companies are wrong about this, and your legal research is 100% correct. I have been told by my family lawyer as well, that format shiffting is legal.
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