What does the law say
Following text was taken from "The Digital Millennium Copyright Act of 1998" found at www.copyright.gov/legislation/dmca.pdf
Section 103 of the DMCA adds a new chapter 12 to Title 17 of the U.S. Code. New section 1201 implements the obligation to provide adequate and effective protection against circumvention of technological measures used by copyright owners to protect their works.
Section 1201 divides technological measures into two categories: measures that prevent unauthorized access to a copyrighted work and measures that prevent unauthorized copying of a copyrighted work. Making or selling devices or services that are used to circumvent either category of technological measure is prohibited in certain circumstances, described below. As to the act of circumvention in itself, the provision prohibits circumventing the first category of technological measures, but not the second.
This distinction was employed to assure that the public will have the continued ability to make fair use of copyrighted works. Since copying of a work may be a fair use under appropriate circumstances, section 1201 does not prohibit the act of circumventing a technological measure that prevents copying. By contrast, since the fair use doctrine is not a defense to the act of gaining unauthorized access to a work, the act of circumventing a technological measure in order to gain access is prohibited.
Section 1201 proscribes devices or services that fall within any one of the following three categories:
How does Vanity module fit in
First of all, Vanity modules do not in any way descramble, decrypt or otherwise avoid, bypass, remove, deactivate, or impair any technological measures that prevent unauthorized access and / or prevent unauthorized copying. You, as a legitimate owner of a copyrighted works in form of CD / SACD / DVD-A / Blu-Ray discs, have lawful right to access said copyrighted works. The sole idea behind our modules is to enable the best possible playback of all digital audio formats via combination of a Vanity module equipped CD / SACD / DVD-Audio / Blu-Ray player and a high end outboard DAC or fully digital power amplifier. Simply said, we merely take the signal going to player's own DAC and send it to a higher quality outboard DAC, while performing advanced digital signal processing.
Furthermore, we fully implement the Serial Copy Management System and flag the digital output stream appropriately as to prohibit copying. Besides that, copy protection mechanisms in form of watermarks embedded into the audio stream are still retained and are fully functional.