RealNetworks has suspended selling the RealDVD software after Judge Marilyn Hall Patel of U.S. District Court in San Francisco temporarily barred the company from selling it. RealDVD is a program that allows users to copy DVDs onto the hard drives of their computers. The software has only been on sale for about a week and on the same day the product launched the legal fight began. In all, six major studios are suing the Seattle based company. This is not the first time RealNetworks has made waves in the industry, their Chief Executive Rob Glaser has danced with Steve Jobs and Microsoft, so taking on all of Hollywood would seem like the natural next move.
The Tuesday the product launched and the lawsuit was filed Glaser wrote “great products should not be bullied out of the market by people trying to misuse the law to suppress legitimate innovation.” So, what exactly does the law say? Well, for starters just pop in any DVD you have lying about and you’ll find out a pretty good interpretation:

DVD FBI Warning
“The unauthorized reproduction or distribution of this copyrighted work is illegal. Criminal copyright infringement including infringement without monetary gain, is investigated by the FBI and is punishable by up to 5 years in federal prison and a find o $250,000.”
This isn’t a case where you have to capitalize on the copied product by selling a copy. The warning is clear, ANY unauthorized reproduction is illegal. Having “users [be] on the honor system” to not rent a movie from Blockbuster or Netflix, burn the DVD, and return it isn’t enough for Hollywood. While Glaser might consider there to be an alternative interpretation of that warning from the FBI, ‘The Digital Millennium Copyright Act of 1998‘ tends to put any doubts to rest. While this product will certainly grab the attention of the film industry it could potentially set a precedent going forward as a way to clarify the law. Depending on the outcome it could either lead to RealNetworks stepping out of their recent slump within the industry or it could see them with a takeover offer to make this problem go away.
I for one hope the precedent is perfectly clear. The more ambiguous the law is in regards to digital copyright issues the harder it is to create solid foundations for future capitalist success. I fully support the film studios in this totally legitimate claim against RealNetworks. I’m tired of being the only person I know not willing to use BitTorrent, or something else to illegally download movies, music and computer software. While my friends and peers continue to take advantage of the film/music industry with no penalties I still harbor some sense of moral indignation for such actions. I don’t steal my music or my movies. In fact it pisses me off when people do. I’m obviously a huge supporter of future technologies and ways to provide content to consumers in easily accessible ways. There is no denying that big changes are coming to the music and film industry over the next 5-10 years. However, copying rented movies to personal hard drives is, to me, a clear violation of the laws as they stand now. As with most copyright laws I’ll be watching how this one plays out, they tend to be game-changers depending on the outcomes.
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