It's down to primary purpose, if the primary purpose or perceived primary purpose is deemed to be legal then the product is legal the the product is legal, the act of copyright breach or trademark breach is an illegal act even if in the conditions of a home user not breaching these due to the fleeting storage of the material, the Alan sugar case is a good example In the UK, music company CBS tried to stop Alan Sugar's Amstrad selling tape-to-tape recording equipment (CBS Songs Limited v Amstrad Consumer Electronics Plc [1988] WL 624207). The House of Lords came to a similar conclusion to the US Circuit. Since the machines were capable of being used lawfully or unlawfully, and there was no incitement by Amstrad to use the machines for illegal copying, it would not grant an injunction against them. The law has of course been tweaked and amended since for things such as chipped cable boxes and they started using the primary purpose test to deem if a device/program could be deemed illegal.
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