Converting video bought on iTunes for use on an iPhone

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I have a library of music videos i have downloaded from iTunes and i want to put them on my iPhone - but obviously don't need the full screen quality so trying to cut them 'down to size' to save on space usage on the iPhone.

I've tried opening them in Quicktime pro but the 'Export' option is greyed out. Is this because they are copyright protected ?

Is there any other software i can use to convert them to iPhone 'format/size'

Many thanks
 

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