> File sharers still take the money away
> from the rights owners

I think this is the main point of contention. With DVD Factories you definitely have people paying money for the content. That money is a tangible loss. It might not be the same price as buying it new in the high street, but it is still a sale.

I dont think that people can use the same argument against file sharers where no money has changed hands. There is no evidence of a loss.