"The RealDVD products, by their very nature, open a veritable Pandora's box of liability for Real," the judge stated.
RealDVD was launched in September 2008. The program enabled consumers to convert DVDs to digital form. Immediately, Hollywood music studios along with the DVD Copy Control Association filed a suit against RealNetworks.
Victory for music studios
The federal judge accepted all the arguments presented by Sony Corp., Universal Studios, Walt Disney Co among others and rebuffed Real’s assertions it had acquired a license from the DVD CCA.
Dan Glickman, chairman and chief executive officer of Motion Picture Association of America Inc., stated that the ruling "affirms what we have known all along: RealNetworks took a license to build a DVD-player and instead made an illegal DVD-copier".
"This is a victory for the creators and producers of motion pictures and television shows and for the rule of law in our digital economy," he said.
RealNetworks expressed disappointment with the decision adding, "We have just received the Judge's detailed ruling and are reviewing it. After we have done so fully, we'll determine our course of action and will have more to say at that time."
RealNetworks’ assertion
The lawyers for Real have claimed that RealDVD had been launched to tackle privacy concerns because the program preserved encryption.
They further stated that the software is equipped with privacy protection as consumers can only a single copy thus meeting the growing demand to transfer DVD content to hard drives for easy storage and viewing.
In the ruling the the judge stated, "The court appreciates Real's argument that a consumer has a right to make a backup copy of a DVD for their own personal use."
Patel added that "a federal law has nonetheless made it illegal to manufacture or traffic in a device or tool that permits a consumer to make such copies".
The ruling did not schedule a date for the trial in the case.
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