either the individual are pressing these dvd which would require a master copy which they could master of of the demo and then mass produce and press copies, or they could copy and burn. I highly doubt that they would be using a dvd+-/rw burner due to several issues and variables in this process. Cheapest and quickest method would be to press these discs and screen print them. This would also allow them to have roughly 4.7g on the single layer dvd instead of the 4.3g limit on dvd+-R/RW media. If the original falls between 4.3-4.7g and the clone is a complete copy they are pressing them. read below to understand the media size limits/gig size and pc HD gig size. as for having to crack the macrovision protection, i specifically brought up concerns with this product and questioned about the disks having this encoding and they didnt, as well as the simplicity of making other knock-offs of this format without a copy. Though all i seemed to also recieved were individuals trying to be hard about this topic flapping lip. Also using macrovison would also require paying royalties for using this encoding on the product and doesnt provide protection anymore. This should have been foreseen sad to see that it can effect profits for a small company.
here is alittle more indepth on dvd burn media and its battle for which will be the standard as well as manufactured dvd standards
http://www.dvdrhelp.com/dvd
all you need on region encoding
http://www.dvdrhelp.com/glossary#Region%20Coding
http://www.dvdadept.com/DVD_Regions.asp