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Here is a statement of dubious accuracy from their FAQ.

Is it legal to edit movies?
CleanFilms is a Co-operative rental club. All subscribers to our service
become members of the Co-op. The Co-op collectively agrees to have
CleanFilms purchase original, un-edited DVD movies in their behalf.

Since technically a DVD is a piece of software, copyright law allows for
the owner of the software to make a backup copy of the software. This
backup copy can be edited. The Co-op always maintains a 1 to 1 ratio of
edited and non-edited originals.

As collective owners of the original, unedited movies, the Co-op has the
right to have CleanFilms make family edited backup copies of the
originals to edit out content that is objectionable to its members -
similar to how you might press mute to avoid hearing objectionable
language today. Accordingly, you must subscribe as a member of the
rental club before you can rent edited movies.

CleanFilms is providing a service."

Tony Doyle, Librarian
Livingston High School, Livingston, CA
"You don't have to burn books to destroy a culture.  Just get
people to stop reading them."-- Ray Bradbury

Mark Williams wrote:
> My first reaction was 'Is this legal'... surely what this company is doing
> violates copyright (unless they have individual agreements with and
> permission from the directors, producers, and studios involved, which I
> highly doubt)...

> Indeed, CleanFilms, Inc. puts the folling disclaimer on their website (in
> rather small print):
> "CleanFilms provides content-edited movies for private home viewing only.
> CleanFilms and its suppliers are responsible for all edits made to the DVD
> movies after the original sale. The motion picture studios, directors, and
> producers of the unedited version were not involved in the creation of the
> content-edited version contained on CleanFilms DVDs. Accordingly, the
> content-edited version of the movies which CleanFilms carries may not
> reflect the intent of the motion picture studios, directors, and producers. "

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