WaTunes: RealNetworks Drops RealDVD Appeal; Will Pay Studios $4.5M

March 6, 2010 at 3:38 pm Leave a comment

Source: DMW

Seattle – RealNetworks (NASD: RNWK)announced late Wednesday that it has dropped its appeal of a federal court ruling that found its DVD-copying RealDVD software infringed copyrights, and has agreed to pay the movie studios that sued the company $4.5 million to cover legal fees. Seattle-based RealNetworks, which first introduced the RealDVD software in September 2008, also agreed to an injunction against further distribution or support of RealDVD.

As a result, the company will also shutter the metadata service that feeds DVD cover art and movie information for the existing approximately 2,700 users of RealDVD. 

"We are pleased to put this litigation behind us," said Bob Kimball, president and acting CEO for Real.

"This is another step toward fulfilling our commitment to simplify our company and focus on our core businesses. Until this dispute, Real had always enjoyed a productive working relationship with Hollywood. With this litigation resolved, I hope that in the future we can find mutually beneficial ways to use Real technology to bring Hollywood's great work to consumers." 

The DVD Copy Control Association (DVD CCA), which represents studios and patentholders of anti-copying technology on DVDs, argued that RealDVD violated the license of its Content Scramble System (CSS), and made illegal permanent copies of copy-protected DVDs.

"Almost from the moment this product was introduced, it was clear RealDVD violated the CSS license," said Jacob Pak, president of DVD CCA. 

"Now, after months of arguments from both sides, the legal message is clear: making a DVD copier is a breach of the CSS license."

Posted via email from WaTunes

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