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Certainly this decision has a logical basis BUT, they were not creating a new film and selling it as if they produced it. They were selling a cleaned up version and giving the proceeds to the original film distributor. I don't know if they included the original disk with the cleaned up version but if they were I would think it SHOULD be legal even if it presents a technical violation of copyright laws.

Hopefully they can make some agreement with the distributors or movie creators that allow them to do that.

I don't normally watch "R" rated movies. On occasion I will see a particularly good one but I don't think I need to see gratuitous violence or graphic sex.

When I go out looking for a movie to rent or own I pass on the R's. Hollywood in this instance is cutting their own noses.

You can't buy a bunch of Leathermans, remove the blades, and sell them in England at a profit as special "legal in England" Leathermans without the maker's permission.