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April 28, 2009 3:49 PM PDT

Real CEO acknowledges RealDVD will copy rentals

by Greg Sandoval
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Update 9 p.m.: To include more on Glaser's comments about efforts to prevent RealDVD from being used to pirate movies.

SAN FRANCISCO--Rob Glaser, founder and CEO of RealNetworks, acknowledged in federal court on Tuesday that his company's software, RealDVD, could be used to make unauthorized copies of DVD rentals.

But Glaser said that the company does all that it can to "steer people away from that," including limiting playback of copies to five separate machines. Moreover, he said the problem could be eliminated if the major movie studios helped create a way to identify a movie as a rental.

Rob Glaser poses for a photo following his testimony in the RealDVD case.

(Credit: Greg Sandoval/CNET Networks)

"We would need cooperation from the studios to mark (DVDs) some way differently so we would then operate on (the discs) in a different way," Glaser testified.

Glaser's testimony promises to be the dramatic highpoint in the dispute between Real and the Motion Pictures Association of America over RealDVD. The two parties presented their cases before U.S. District Judge Marilyn Patel.

RealDVD enables consumers to create copies of DVDs and store them on hard drives. The largest film studios filed a lawsuit last fall accusing Real of copyright violations and breach of contract. Real argues that the studios are using litigation to derail a potential competitor. The MPAA says Real is trying to make money off of the studios content without paying for it.

At stake in the trial is Real's efforts to replace DVD players with its own player, called Facet, which is equipped with a hard drive. For the studios, a Real victory in the case could mean Hollywood would lose at least some control over who creates copies of films.

'Just say no'
Under questioning by Real's lawyers, Glaser tried to dispel MPAA assertions that RealDVD was created to help people pirate films. The studios have often cited an Associated Press report in which Glaser allegedly was "winking" to those who illegally download movies.

"If you want to steal," Glaser was quoted by the AP, "we remind you what the rules are and we discourage you from doing it, but we're not your nanny."

Glaser denied that quote was insincere. He noted that the company's FAQ on RealDVD has strong language that warns consumers not to copy movies that they don't own.

At this point, the judge got some in the courtroom to snickering when she said: "Do you think this will be more effective than 'Don't Say No?'"

The judge was apparently referring to the anti-drug campaign launched by the Reagan administration that was often ridiculed by skeptics who called it halfhearted and ineffective.

Glaser explained to the judge that the situations weren't the same. Real wasn't trying to convince teenagers not to experiment with drugs. The product was designed to appeal to responsible adults.

As far as those who don't have any compunction about obtaining unauthorized content , they wouldn't be interested in the $30 RealDVD because there's lots of illegal software available on the Web that offers more features for free.

Glaser is set to again take the stand when the hearing resumes Wednesday morning.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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by slakerx April 28, 2009 4:41 PM PDT
So RealDVD can do the same thing as 50 other programs. Big deal...
Reply to this comment
by Lerianis3 April 28, 2009 4:55 PM PDT
Agree totally. It's time for these companies to realize that people have come down on the side that it is okay to 'rip and return' a rental. I mean, you are paying...... 6 dollars last time I was in a Blockbuster per movie? Yeah, you have earned the right (considering how many times the thing has been checked out before you get it in most cases) to 'rip and return'.

These companies simply want to live in the 'old world' where you force people to buy a 'new' copy when they find out that they like a DVD that they have rented.... sorry, not going to do that.

Personally, I haven't been in a rental store for nearly 7 years now..... but if I did rent something and liked it, I would 'rip and return' to be quite blunt, considering how much I paid to rent the thing in the first place.
by MagiMamoru April 29, 2009 3:13 AM PDT
6 dollars a rental? Ba, find your local RedBox and pay a buck a day, or you could wait until the movie is in the $5 dollar bin.

Sorry there is no excuses for ripping aka backing up copyrights you have not purchased viewing rights on. A purchase that only have to happen once for edition.
by monkeyfun14 April 29, 2009 3:29 AM PDT
@lerianis

Just because you can doesn't mean you should.

I could kill my neighbor does that mean I should?
by SIGHUP April 28, 2009 5:20 PM PDT
The RIAA and MPAA ****** bags should have just gone to their website. It says that RealDVD is 100% legal, so you can save movies with confidence. Would have saved them the legal fees.
Reply to this comment
by Kamokazi April 28, 2009 5:20 PM PDT
Most of us hate the spyware-like RealPlayer and its proprietary codecs. They have been the bane of fixing our friends' computers, and have forced their nose into every other piece of software we've download or big name computer we've bought for the last decade. At one time, RealPlayer was ranked #2 on the worst tech products of all time (behind AOL).

Yet, we are all instantly jumping behind them to their defense without a second thought. It takes a true evil to accomplish that. Good work MPAA. You are scum beyond what RealNetworks could ever dream of being. May you rot in the fiery depths of hell.
Reply to this comment
by SeizeCTRL April 28, 2009 7:45 PM PDT
HAHAHA! I was thinking the same thing. I have hated Real since as long as I can remember. I love RealAlternative and QuickAlternative because I hate both QuickTime and Real Player or whatever it's called now... it's been like Real Player, Real Media, Real Jukebox, RealPainInMyAss!

So for me to be completely pulling for them, it has to be bad. It's almost like the RIAA and MPAA are the modern day equivalent of the Nazis, minus the genocide. That's how much people hate the RIAA and MPAA. You could probably take the most racists of different races, put them in a room and yell out RIAA and they will all agree on that ;)
by El_Segfaulto April 28, 2009 8:10 PM PDT
You forgot to mention <buffering....buffering...buffering...>
by TheGeekReview April 28, 2009 7:22 PM PDT
People have been 'Ripping and Returning' since the vcr days. The MPAA is sueing Real because they are the only ones making money off a ripper unlike all the free ones you can get off the net.
Reply to this comment
by SeizeCTRL April 28, 2009 7:48 PM PDT
Seriously, it's not like the RIAA or MPAA get any more for all those blank DVDs and CDs we buy...

OH WAIT! THEY DO!!!

http://en.wikipedia.org/wiki/Audio_Home_Recording_Act
http://en.wikipedia.org/wiki/Private_copying_levy
Reply to this comment
by unknown unknown April 28, 2009 8:26 PM PDT
Someone wants to copy DVDs:

$40.00 for RealDVD with restrictions on the copies.
or
Free for at least 4 other programs that come to mind and can do the same thing without restriction.

Which do you think pirates are going to go for?
Reply to this comment
by monkeyfun14 April 29, 2009 4:36 AM PDT
What does it matter pirates will just steal the program anyways.
by lordmorgul April 28, 2009 11:53 PM PDT
Great... so they want to reintroduce garbage to keep rentals from acting just like purchased discs. So, the rental stores will not be able to sell rental copies after they are used for awhile? Self-destructing dics that can only be viewed 1000 times?

Seriously, see the light at the end of the tunnel and give up on controlling distribution in the same old fashion as yester-century. Think outside the box entertainment industry... you're stuck inside a tiny one right now.
Reply to this comment
by unknown unknown April 29, 2009 1:37 AM PDT
I think you maybe reading too much in to that statement.
by EcuadorHomesOnline April 29, 2009 3:07 AM PDT
Is RealNetworks still in business? Wow! I thought they lost out to VXtreme back in '96

Is Rob Glaser still CEO? Even more incredible. I thought he'd get booted out after he testified in court that "Microsoft is trying to put us out of business" when it was his own bumbling that made their stock drop 90%

I'm with the MPAA on this one. I hate it when people copy DVD's and movies. Remember that "With freedom comes responsibilties". If you have the freedom to buy and rent music and movies, then you have the responsibility to respect the copyright owners rights.
Reply to this comment
by SteveSAA April 30, 2009 2:30 PM PDT
"With my freedom to give you thousands of dollars of my money comes my responsibility to use your products only as specifically enumerated. After all, I enjoy the process of hunting exactly the DVD I want every time I watch a movie, then watching all the advertising you stuck in at the beginning. Having them all on a hard drive, and being able to watch the actual movie within five seconds of my decision to do so? Screw that! I respect copyright owners rights!
by monkeyfun14 April 29, 2009 3:31 AM PDT
People ready to jump behind any company that supports their piracy I see.
Reply to this comment
by MrBoomshadow April 29, 2009 5:45 AM PDT
The judge or the reporter should have said "Just Say No."
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