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I've never watched a Pirate DVD, but if it's being digitally copied from a genuine disk then I imagine it's perfect quality.
I think this is just a throw back to the time of endlessly copied videos, which really were often of horrific quality.
Personally, it offends me that they have to chuck these logos up at the start of legitimately purchased movies. It's insulting to remind me NOT to steal when I've already purchased the damn thing in the first place!
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