The AACS encryption controversy is a prime example of the interplay between the different mechanisms for controlling cyberspace.
Background
On May 1st, 2007, stories on the popular social bookmarking website Digg bubbled up containing the keys to unlock content from HD-DVD's. In response, AACS LA sent out cease and desist DCMA letters demanding the removal of all articles containing the key. However, Digg users quickly "revolted" and immediately began posting and "digging" all articles containing the key. Before long, though, the entire front page of digg was overrun with stories that exclusively related to the "banned" encryption code.
After trying to quell the uprising however, Digg changed their pace and instead announced that "after seeing hundreds of stories and reading thousands of comments, you've made it clear. You'd rather see Digg go down fighting than bow down to a bigger company. We hear you, and effective immediately we won't delete stories or comments containing the code and will deal with whatever the consequences might be."
Analysis of the Controversy
The Digg controversy highlights the mediating forces that different entities have against one another in cyberspace. On once hand was the legal action the AACS LA took, and which Digg, at first, followed. Like Lessig argues, federal laws were able to apply to the situation because both Digg and AACS LA are real world entities that have to comply with government regulations. However, this legal action elicited an even stronger social response, that eventually prevailed over the legal restrictions. The importance of these contrasting forces, though, is that they provide a series of checks and balances that protect users of the Internet overall.
Throughout each of these three case studies, we've seen not only the possibility but the seeming necessity of a reasonable interaction between the various elements with stakes in the Internet. The Internet was founded on West Coast code, and has inherited some of the technolibertarian spirit of that tradition, and so expecting speedy enforcement of East Coast law is as unreasonable as it is to expect enforcement of British press limitations to work for America. However, without carefully considered law, there will be nothing pushing companies to work for the public welfare when it doesn't provide a ready-made profit. Therefore, it is only by employing all four of the forces, including the tradition of law and the new architecture, that the Internet can mature.