The Hollywood studios have filed a lawsuit asking a US federal court to stop RealNetworks from distributing the company’s just-released RealDVD software which allows movies to be copied illegally.

In their complaint and motion for a temporary restraining order, the studios said that RealNetworks’ RealDVD violates the Digital Millennium Copyright Act (DMCA) because its software illegally bypasses the copyright protection built into DVDs that protect movies against theft.

“RealNetworks’ RealDVD should be called StealDVD,” explained Greg Goeckner, Executive Vice President and General Counsel for the Motion Picture Association of America (MPAA). “RealNetworks knows its product violates the law and undermines the hard-won trust that has been growing between America’s movie makers and the technology community. The major motion picture studios have been making major investments in technologies that allow people to access entertainment in a variety of new and legal ways. Our industry will continue on this path because it gives consumers greater choices than ever. However, we will vigorously defend our right to stop companies from bringing products to market that mislead consumers and clearly violate the law.”

The Content Scramble System (CSS) built into DVDs prevents the unauthorized reproduction and distribution of copyrighted material released in DVD format. The RealDVD software illegally circumvents this copyright protection system, says the MPAA.

"Among other things, the RealDVD software enables users to engage in an illegal practice known as 'rent, rip and return,' whereby a person rents a DVD from a legitimate business like Blockbuster or Netflix, uses the RealDVD software to make multiple permanent illegal copies of the movie, and returns the DVD, only to rent another popular title and make permanent copies of it, repeating the cycle of theft over and over again without ever making a purchase. On its own Web site, RealNetworks acknowledges that this behavior is illegal and that its software could be used in that manner."

RealDVD argues it has built-in encryption to prevent saved copies of DVDs from being shared or stolen. "We are disappointed that the movie industry is following in the footsteps of the music industry and trying to shut down advances in technology rather than embracing changes that provide consumers with more value and flexibility for their purchases," RealNetworks said.

The lawsuit, filed today in US District Court in Los Angeles asks for damages and injunctive relief against RealNetworks for violations of the Digital Millennium Copyright Act’s circumvention provisions. The DMCA prohibits the manufacturing or trafficking of any technology or product, service or device that is designed for the purpose of circumventing measures that effectively protect copyrighted titles.

"In manufacturing and selling RealDVD, RealNetworks Inc., a CSS licensee, has attempted to leverage its license improperly by making a product that permits users to circumvent the protections of CSS. Such a product was never intended to be authorized by the CSS license," the MPAA argues.

Story filed 01.10.08