Does the DMCA have jurisdiction in Canada?
Are there any laws preventing reverse engineering?

It isn't so worse than this:

<snip> 
XVID is a leading open source MPEG-4 video codec, covered by the GNU General Public 
License (GNU GPL). At the beginning of July 2002, XVID learned that their codec was 
entirely stolen by Sigma Designs (the manufacturer of DXR3/H+ hardware MPEG2 decoder 
cards), and is distributed with the name REALmagic MPEG-4 Video Codec, under Sigma 
Designs' own license (not GPL).
</snip> @ http://www.MPlayerHQ.hu/homepage/

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