I think a lot of smaller studios play fast and loose with regulations of all kinds, either because they think they can get away with it, or because they are ignorant.

If you remember, the FBI reported that in one of the inspections they recently did, the studio admitted it kept no records at all prior to 2005, and I constantly hear studios or websites asking questions on one of the boards that indicate they don't understand the requirements of 2257.

I really can't understand why a studio would take the risk of using a non-US model when the regulations are really clear on that. But then again, I also don't understand why a studio would use popular, copyrighted music in their DVDs when there's a statutory minimum $25,000 penalty per violation (i.e., per song) for using music without a license, and I've seen several studios that do that.

Some companies just don't make the wisest choices.