There's no indication that it's done in trade. Just that they're giving the genuine movies away to get people to show up (while supplies last sort of thing). The more people show up, the more they anecdotal evidence they have that piracy is up. Even if some of those people never pirated anything, and just showed up for the freebies. Even if they do require a trade-in, I bet a lot of the people showing up will be trading in stuff like: 1. DVD-R coaster with Sharpie scrawl saying "Silent Hill 2006 Backup" -- Even submitting a blank DVD, you'd likely come out ahead no matter what DVD title they were giving you. 2. Cam bootleg of some whatever movie. Some of the bootleg movies sold on street corners are real crap. It may not have DRM, but they're definitely not something you'd keep. I'd imagine most of the stuff they get would have been destined for the landfill anyways.