May 8, 2009 by Robert Tharp at 4:09:37 pm
Pity RealNetworks. The plucky technology firm is facing an uphill battle - and mounting legal costs - as it goes up against the Motion Picture Association of America
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Cnet reports: Legal fees also took a major toll. Since late last year, RealNetworks has been embroiled in a legal battle over its RealDVD software, which can rip a digital copy of commercial DVDs onto a personal computer. Hollywood, courtesy of the Motion Picture Association of America (MPAA), has sued RealNetworks to prevent the company from selling the program. Since 2008 RealNetworks has shelled out $6 million in legal fees and associated costs to defend RealDVD.
Technology litigation veteran Ted Stevenson of Dallas' McKool Smith says if history is any indication, RealNetworks is facing difficult odds. "In 2004, a court in the Northern District of California ruled that DVD-copying software from 321 Studios violated the Digital Millennium Copyright Act," he says. "That software was sold to ostensibly permit consumers to back up their DVD purchases, but 321 Studios lost because its product had no safeguards to prevent copying of borrowed or rented DVDs. Like that case, a key fact in this case is whether RealNetworks' accused product contains adequate safeguards." To interview Mr. Stevenson, contact Bruce Vincent at 800-559-4534 or bruce@androvett.com.
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