Senators Orrin Hatch (R, Utah) and Patrick Leahy (D, VT) recently introduced the "Protecting Intellectual Rights Against Theft and Expropriation," or PIRATE, Act into the U.S. Senate. This act would allow the Attorney General to file civil lawsuits against suspected copyright infringers. This allowance is in addition to the ability of the rights holder to file civil suits and the government's ability to pursue criminal action in cases where damages exceed $1,500. So, if you are accused of copyright infringement, guilty or not, you could face three separate legal battles that you would need to fight.
Even if you were eventually going to be found 'not guilty' of copyright infringement, the costs associated with trying to fight three legal battles could end up being so high that you would be forced to settle. The average American does not have enough finances to keep three fights going. Copyright owners could force people into not taking advantage of fair uses for a work, because claiming fair use does not prevent you from being sued or prosecuted; it is only a defense you can make once in court. A copyright holder with the effective power to bankrupt you basically has the power to dictate what uses it will and will not tolerate as "acceptable uses" of their work. It would take a well-organized and well-funded legal challenge to prevent that specific rights holder from dictating use to users.
Doing such simple things as making a backup copy of a CD or DVD you buy, or making a mix CD from tracks on disks you bought, are uses that many would agree should be considered "fair uses." Those in the music and movie industries, however, have a different view. Jack Valenti, head of the Motion Picture Association of America, has said that "If you buy a DVD you have a copy. If you want a backup copy you buy another one." If that 'limited edition' DVD box set you bought a few years ago gets a scratch, or if the DVD physically begins to degrade (delamination), Valenti's view would leave you out of luck. You would not be able to find another copy, since it was 'limited edition,' and since you were not allowed to make a backup copy, you no longer have access to that media. Or, you make a backup copy onto recordable discs when you purchase the movie for just a few dollars, and then watch the copy, keeping the original in a safe place. If the recorded disc goes bad, you pull out the original DVD, burn a new copy, and put the original back. You have then extended the lifetime of that DVD, and made it more useful for you - but is that worth the possible legal trouble?
The assault on our fair use rights is continually under assault from the content industries. Do not let them dictate how we can use the movies and music we purchase and own.