Johansen doesn't think what he's doing is illegal; he's adding DRM rather than breaking it. He and Farantzos were giddy about the prospect of Apple's iTV, hoping companies will pay up to get movies on the set-top box when it comes out, after seeing the ill effects of being shut off the iPod. Spurned by Apple? Step right up.
This is a different twist on the constant battle between DRM crackers and builders (see, just last week, Microsoft's lawsuit5 against a hacker for releasing an app that strips off its PlaysForSure DRM). If successful, DoubleTwist will eliminate Apple as a middleman to its own hardware. But in doing so, it just might help Apple sell more of that hardware. Apple enjoys fat margins on its devices, and perhaps should turn a blind eye, for now.