It is stupid, this is just another typical method corporations use to try and bully small businesses and people into submission as much as possible. Forget copyright folks, this is all about control, in the games industry corporations are constantly trying to come up with ways to control their customers through DRM.
The copyright is just a sodding excuse, for instance, when you purchase a product with DRM in it, you are not actually purchasing the product. You are merely renting it, they want to be able to milk as much money as possible and they don't care how they do it. Internet piracy is actually one of the only things that are beating this kind of system back because the government are in the corporations' pocket.
I will say this though, it's not as stupid as the law against oddly shaped vegetables and fruit and being able to prosecute game retailers for selling age restricted games to people without an I.D proving they are older.