No, here you HAVE violated the conditions of the DVD. Fair use means watching it with your family (up to 5 people). 50,000 people is obviously distribution and is a violation of IP rights.
I am in trouble, my family has 7 in it.
Well, I was using a typical order of magnitude numbers. 5 is ok, 50,000 is NOT fair use. 500 is not fair use either, and neither is probably 50.
So instead of having everyone at the same time watch my DVD, I can give it to a friend, and them give it to another, and with just degrees of separation, almost everybody can watch the DVD.
So its not really that I can't have 50,000 people watch the DVD, I just can't have them watch it at the same time.
If you would like to put it like that, yes. But the point is that with transferred ownership (and hence serial viewing) it will take 11 years for 50,000 owners to watch a 2 hour movie, if they watch in a continuous marathon. If we assume that there are 4 people in the family of each owner on average and it is actually only watched during the afternoon hours (i.e. when people are home from school and work and not sleeping) Then you can if you're lucky get two ownership transfers per day and it will then take 17 years for 50,000 people to watch the movie. By that time the movie is outdated and everyone who wanted to see it has seen it anyways. I.e. this serial transfer of ownership, even when done very efficiently (i.e. twice a day), does not significantly undermine the IP (i.e. the ability of the owner to profit from his creation).
Irrespective of any laws, when a "Black Market" exists, it is just the Free Market at work.
That is true. A large black market shows that something is wrong, but not necessarily WHAT is wrong. It may be overpricing, it may be hampering of the product (DRM or annoying FBI-warnings), inavailability due to bad payment systems due to bad banking laws etc. But you cannot from a black market alone tell WHAT is wrong.
It is funny watching the clowns in the circus go round and round wondering why the system isn't working. They are not seeing the forest through the trees. It is working, just not they way they want it to work.
If there is a black market then obviously the system is not working.