DEMOfall 2006: Cuts.com

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Cuts is a really interesting system that enables you to edit the video you have in a truly innovative way. In essence, Cuts allows you add in some metadata to your own media files that handles skipping, muting and commenting on the media as it plays throughout various points in the playback.

This is entirely legal since you are required to have the media on your own machine. They’ve built a community around this