The RealNetworks verdict states that customers never have the right to make copies of content they legally own if they have to circumvent copy protection technology to do it.
Corporate piracy case was perhaps the highest profile scuffle since the fall of Napster
In September 2008 Seattle-based RealNetworks, a progressive media company founded by an ex-Microsoft executive, launched a new software product, RealDVD. The seeming innocuous software was marketed under the premise of allowing you to make copies of content you legally own. The catch? Movie studios often don't want you to make copies of content you legally own so they oft put copy protections on the disc. RealDVD was designed to circumvent those protections. And that's where its trouble started.
In October 2008 a coalition of Hollywood plaintiffs filed suit against RealNetworks for promoting copyright infringement. They argued the software would make it equally easy to make copies of content that users didn't legally own (such as movie rentals). They also accused it of violating the Digital Millennium Copyright Act, a bill that prohibits circumventing copyright protection measures, such as copy protection technologies, even on content you own. The studios also accused it of violating a contract with the DVD Copyright Control Association.
Last August, U.S. District Court Judge Marilyn Patel sided with the Hollywood studios and found RealNetworks guilty of DCMA violations and breach of contract with the DVD CCA. She ordered a preliminary injunction barring the sale of RealDVD. In the statement she said that customers never have the right to make copies of content they legally own, if it's copy protected.
Now RealNetworks has finally settled the case, to the tune of $4.5M USD. The settlement comes as RealNetworks was formulating an appeal of the judgment. An additional provision of the settlement is that RealNetworks will no longer be allowed sell RealDVD.
The case was perhaps the biggest corporate piracy battle since the fall of Napster. Daniel Mandil, chief content protection officer of the Motion Picture Assn. of America (MPAA) cheered the victory, stating, "We will continue to vigorously pursue companies that attempt to bring these illegal circumvention products and devices to market."
In total, only 2,700 people purchased the RealDVD software during its brief availability.
RealNetworks acting chief executive Bob Kimball comments, "We are pleased to put this litigation behind us. 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 settlement allows RealNetworks to refocus on its key offerings, such as the Rhapsody music subscription service, its online properties (RollingStone.com and Film.com), RealPlayer, and RealArcade.
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
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