Problem: media producers using copy-protected media, and your media
breaks. The producers demand that you buy a new copy instead of
replacing it.

Instead of replacing it ? Isn't that what buying a new copy does ?
I think you meant using your backup
I remember Jack Valenti (IIRC) recently saying (before leaving his post) that you don't expect a crystal manufacturer to replace your glass when you break it without paying for it, so why should you be able to replace your DVD/CD's without paying for it. Of course, he conveniently forgets that if I had the ability to make crystal glass copies, I would do so, and prolly not buy a dozen for my dinner setting, and instead buy 1 and copy them, thereby destroying the crystal industry through my acts of "piracy"

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