DRM News

Last year, RealNetworks brought out RealDVD, a DVD copying program that would allow people to make a copy of a protected DVD on their computer. Hollywood responded by going after the software in court, claiming that it would be used by movie renters to rent a movie, rip a copy and then never consider purchasing a copy of the DVD itself. In October, the MPAA succeeded in getting a temporary injunction that barred sale of RealDVD. At the same time, the movie studios pushed forward a lawsuit that claimed that RealDVD was a violation of the Digital Millennium Copyright Act and represented a misuse by RealNetworks of their DVD encryption license.

RealNetworks was fighting it in court, but as reported by the New York Times, they have decided to settle, paying the studios $4.5 million in accrued legal costs and ending the fight to have the temporary injunction lifted. This essentially ends any chance of the software ever seeing the light of day.

“We are pleased to put this litigation behind us,” Bob Kimball, president and acting chief executive of RealNetworks, said in a statement. “This is another step toward fulfilling our commitment to simplify our company and focus on our core businesses.”

Jacob Pak, president of the DVD Copy Control Association, the industry group that controls licenses to DVD encryption technology, hailed the agreement. “Now, after months of arguments from both sides, the legal message is clear: making a DVD copier is a breach,” he said in a statement.