Audioee, it is not just that the software can't be sold. It can't even be created. At least not without permission.
The reason the MPAA objects, even if the new file has stronger encryption, is because they don't care so much about piracy. They know piracy will happen anyway. What they care about is the control of the distribution. They saw what happened to audio CDs. CDs' lack of encryption has meant that the market dictated how consumers bought music. Turns out consumers want cheap single song downloads.
Why the MPAA is stupid is that they are resisting what the consumers want. iTunes is the second largest music retailer in the US (Walmart is #1). The MPAA should see that there is the potential for a whole new market. Preventing existing movies from being ripped prevents the formation of the new movie marketplace. One of the main reasons why mp3 players became such a hit is that people could rip and use their existing CD collections; they didn't have to buy their stuff all over again. If people could rip their movie collection, we would have a whole new industry of movie playing devices, movie distribution, etc. But, the MPAA fears a lack of control. So no (legal) ripping.