Well, lots of companies are in egal trouble over posting links to a program called DeCSS, which decodes the encryption on DVDs. Now, this is not a copying tool, it is a tool that breaks the encryption to allow DVDs to run on everyone’s favorite, Linux. But, this same encryption is what is preventing them from being copied, so, to answer your question, yes, they can.
Now, onto justinh’s question. There are a couple of companies that are coming out with DVD-R drives that ARE backwards compatible with CD-Rs. These are still rather pricey drives, but to be able to get 4.7 gigs on one disk would be pretty nice. I believe Pioneer has one (external scsi) for around $4500. I remember when CD-R drives cost about the same price, so I would give a 2 or 3 years on the tehnology, let them get it working properly, and then try one. AS it is now, a blank DVD goes for about $10.
Now, on the other hand, there are drives out there calld DVD-RAM. These record to something that you might think looks like a DAT or even a small VHS tape. These are DVDs encased in plastic for protection and ease of writing. Some of these drives have made it below $1000 in the last couple of months. The drawback to these is, the disc can not be used in any DVD-ROM or DVD player, it has to be used in a DVD-RAM drive, and you’ll probably be the only person you know to have one.
My advice is to hold off on buying one, let all these people buying the $4500 DVD-R drives to be he beta testers (hehe) and wait for them to be as easy to use as CD-R drives.
As I mentioned earlier, about DeCSS, this is actually a pretty big legal battle. I have been as envolved as a normal citizen can be in something like this. Everyone’s favorite magazine, 2600, is being sued because they posted links on info to DeCSS, and they don’t even like the program because it enables (theoretical) copying, but because it makes DVDs playable on any operating system. This is a true issue of freedom of speech, and I suggest that any of you guys interested in learning mor about this go to http://www.2600.com . I have also expressed my dislike towards the DVD CCA (DVD Copy Control Association) by buying a shirt from http://www.copyleft.com . This is all about “freedom downtime”