p2pnet.net reports:

A San Francisco-based company figures it’s found a way for film fans to edit copyrighted movies —– without being sued.

How does it work?

Cutlists are “virtual edits separated from the content itself” and with them, “users can share their creations over the Internet,” says Cuts. “The cutlists then act like a virtual remote control, automatically skipping, stopping, muting or playing comments created by the ‘Cut-Maker.’

“Cutlists work with DVDs and multiple download video formats including Protected WMV files and even video purchased from iTunes.”