Seattle (WA) – Real Networks today said that it has filed a lawsuit against major Hollywood studios to protect its RealDVD software from potential legal actions of these studios. RealDVD is a software package that allows consumers to copy DVDs, but integrates the usual copy-protection that limits the use of those copies. We aren’t quite sure why Hollywood would be upset about RealDVD, other than the fact that Real Networks may not pay enough license fees. But according to Real Networks, the studios were upset enough to launch “threats” against RealDVD.
In some way, it sounds like business as usual. A software company announces an application that enables content-ripping and subsequent playback on a PC. Hollywood gets angry and threatens with legal action and a lawsuit follows eventually
The difference in this case, however, is that not Hollywood sues, but the software developer.
RealNetworks said that the suit was filed in response to threats made by movie studios and seeks a declaratory judgment that its RealDVD software “fully complies with the DVD Copy Control Association's license agreement.” The suit was filed against the DVD Copy Control Association, Disney Enterprises, Paramount Pictures, Sony Pictures Entertainment, Twentieth Century Fox Film, NBC Universal, Warner Bros. Entertainment and Viacom in the United States District Court for the Northern District of California.
"RealNetworks took this legal action to protect consumers' ability to exercise their fair-use rights for their purchased DVDs,” Real Networks said in a statement. “The DVD CCA, which represents numerous parties including all of the major studios, previously sued another company over the same issues. The trial court ruled against the DVD CCA and allowed the distribution of a product similar to RealDVD. Having lost the case once, the major studios are now trying to get a different result by going to a different court.”
If Hollywood in fact was planning legal action against Real Networks and this is not just a PR stunt, one would have to question whether those studio lawyers in fact had an exact look at the functionality of RealDVD. The software can copy a DVD, but allows only one copy, which is riddled with DRM and limited to the playback on the PC that was used to rip the DVD. RealDVD even leaves the DVD content encryption (CSS) in place and Real Networks claims that its own security (DRM) is “more robust” than CSS.
Consumers can add additional playback licenses for more PCs, but have to purchase those licenses for $20 per playback device. In combination with the basic $50 RealDVD software, the solution translates into a $130 package that is limited to a maximum of five PCs. It was widely speculated that those $20 as well as a portion of the $50 RealDVD package actually include license fees that are paid to Hollywood studios.
Considering the expensive package and the hefty DRM integration, it seems a bit silly that Hollywood would even consider a lawsuit against Real Networks. To us, this seems to be more an argument over license fees than the actual software, which may not even be that successful, given its limited usability. But then, we also know that the music and movie industry are paranoid over any software that may allow the duplication of content no matter what security or DRM is involved.
Common sense suggests that the movie industry has no case beyond license fee claims. But the suit may save Real Networks money in the long run and amplify its PR efforts.
In some way, it sounds like business as usual. A software company announces an application that enables content-ripping and subsequent playback on a PC. Hollywood gets angry and threatens with legal action and a lawsuit follows eventually
The difference in this case, however, is that not Hollywood sues, but the software developer.
RealNetworks said that the suit was filed in response to threats made by movie studios and seeks a declaratory judgment that its RealDVD software “fully complies with the DVD Copy Control Association's license agreement.” The suit was filed against the DVD Copy Control Association, Disney Enterprises, Paramount Pictures, Sony Pictures Entertainment, Twentieth Century Fox Film, NBC Universal, Warner Bros. Entertainment and Viacom in the United States District Court for the Northern District of California.
"RealNetworks took this legal action to protect consumers' ability to exercise their fair-use rights for their purchased DVDs,” Real Networks said in a statement. “The DVD CCA, which represents numerous parties including all of the major studios, previously sued another company over the same issues. The trial court ruled against the DVD CCA and allowed the distribution of a product similar to RealDVD. Having lost the case once, the major studios are now trying to get a different result by going to a different court.”
If Hollywood in fact was planning legal action against Real Networks and this is not just a PR stunt, one would have to question whether those studio lawyers in fact had an exact look at the functionality of RealDVD. The software can copy a DVD, but allows only one copy, which is riddled with DRM and limited to the playback on the PC that was used to rip the DVD. RealDVD even leaves the DVD content encryption (CSS) in place and Real Networks claims that its own security (DRM) is “more robust” than CSS.
Consumers can add additional playback licenses for more PCs, but have to purchase those licenses for $20 per playback device. In combination with the basic $50 RealDVD software, the solution translates into a $130 package that is limited to a maximum of five PCs. It was widely speculated that those $20 as well as a portion of the $50 RealDVD package actually include license fees that are paid to Hollywood studios.
Considering the expensive package and the hefty DRM integration, it seems a bit silly that Hollywood would even consider a lawsuit against Real Networks. To us, this seems to be more an argument over license fees than the actual software, which may not even be that successful, given its limited usability. But then, we also know that the music and movie industry are paranoid over any software that may allow the duplication of content no matter what security or DRM is involved.
Common sense suggests that the movie industry has no case beyond license fee claims. But the suit may save Real Networks money in the long run and amplify its PR efforts.