Actually you’re wrong on this, or painting an incomplete picture.
CleanFlix was sued because they were editing and distributing movies without studio permission, but a competing product called ClearPlay, which was a specialized DVD player that you would plug a flash drive into, and censorship was then overlayed. It was allowed to continue existing because the end user was technically the one making the edits on their copy of the movie, and the movie itself was not being redistributed.
CleanFlix was sued because they were editing and distributing movies without studio permission, but a competing product called ClearPlay, which was a specialized DVD player that you would plug a flash drive into, and censorship was then overlayed. It was allowed to continue existing because the end user was technically the one making the edits on their copy of the movie, and the movie itself was not being redistributed.
https://en.m.wikipedia.org/wiki/ClearPlay