The Director's Guild is very unhappy also as these companies tend to just leave the movies in any state that they want and Directors claim that it ruins what they tried to create in the movie. The directors agree that when someone buys a DVD they should be allowed to edit it for personal use if they want since they legally purchased a copy. However, they disagree with somebody making changes to the DVD and then going ahead and selling their edit, which is precisely what these companies are doing, they claim.
It seems that courts would favour the studios in this battle but companies like CleanPlay may not be so easy to beat. CleanPlay uses a DVD player and a downloadable filter template to cut out the scenes on playback. Therefore they are not actually altering the DVD and re-distributing it at all, just using a template. So in this case, whether or not that can be classed as Copyright Infringement is unknown.
Source:
The Register