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October 7, 2009 10:40 AM PDT

RealNetworks set to file appeal in RealDVD case

by Greg Sandoval
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RealNetworks, a maker of media software, has said it will file an appeal and ask that a district court decision to ban sales of its DVD-copying software, RealDVD, be overturned.

RealNetwork's Notice of Appeal

Copy of RealNetwork's Notice of Appeal. Click on the image for a PDF.

In August, a federal district judge issued a preliminary injunction to halt sales of the $30 software, which enables users to create digital copies of DVDs and then store them on a hard drive. Real said in court documents that sometime before November 9, the Seattle-based company will file an appeal with the U.S. Court of Appeals for the Ninth Circuit.

The film studios claimed in a 2008 lawsuit that RealDVD and Facet, Real's proposed DVD player that copies and stores films, violated copyright law. After hearing arguments from Real and the studios, U.S. District Judge Marilyn Patel agreed.

Her decision to halt sales of RealDVD and Facet after hearing the evidence in the case marked an important victory for Hollywood. Critics say it gives the studios absolute control over the functionality of DVD players. That means, according to groups such as the Electronic Frontier Foundation, the studios can and will thwart innovation.

The Motion Picture Association of America, the trade group representing the studios, says it has worked closely with technology companies to legally deliver digital films and shows. The MPAA denies being an enemy of innovation.

The injunction hearing also attracted a lot of attention because the case was supposed to help determine whether consumers possess the Fair Use right to make digital copies of their film discs. But in her injunction ruling Patel left that question for others to answer.

It's important to remember, Real's appeal will address only the injunction and the case itself will continue to move toward a jury trial unless it is stayed pending a resolution of the appeal, according to Denise Howell, an appellate and technology lawyer.

Real hasn't indicated what arguments it will make. Regardless, Real's chances of getting the decision overturned aren't good.

"What they're going to argue is that somehow the legal basis for the injunction is wanting," Howell said. "They will say that there has been an error of law somewhere along the way but they're going to try and undo the injunction. Real is facing an uphill battle."

There's not much lost in giving it a try, as the costs of an appeal are relatively a drop in the bucket compared to what Real has already spent, according to legal experts.

As far as appellate courts go, the Ninth Circuit has a long record with big technology cases, Howell noted. Probably the most important case was MGM vs. Grokster. In that case, the Ninth Circuit issued a favorable ruling for Grokster but it was later overturned by the U.S. Supreme Court.

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 Michichael October 7, 2009 10:58 AM PDT
The MPAA is the enemy of every self respecting entrepreneur. They're like the mafia - pay us "protection" money. They're an enemy of innovation and frankly I can't wait until their tired ideology is a smoldering ruin under future legislation.
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by myles taylor October 7, 2009 11:50 AM PDT
So until someone comes out with a legal way to get your movies and TV shows digitally on your computer, people will continue doing it the illegal way. I'm not talking about digital downloads but a way to get the media you own legally onto your computer. It's ridiculous that the MPAA is fighting this. They are literally shooting themselves in the foot.
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by dmetras October 7, 2009 2:20 PM PDT
There is a legal way. Unfortunately, not many companies are taking advantage of it. The companies should include a digital copy with every purchased DVD or Blu-Ray. Of course, adding a digital copy along with the physical one would probably drive the price up a bit. Depending on the movie or show, however, it would be worth it (as long as the price increase isn't insane).
by unknown unknown October 7, 2009 5:42 PM PDT
Blu-Ray was suppose to have "managed copy", but in typical Hollywood fashion they bungled it. The license wasn't finalized until this past June and most hardware and discs currently on the market don't support it. When it is finally rolled out, the license allows studios to cap the number of copies and to charge for them. If that's the best they can do they should quit now.
by myles taylor October 7, 2009 9:38 PM PDT
Why would you want a separate disc for your digital copy? It's better to just make a way for people to get their current discs digitally. Also, what about my current college? Even if every DVD started coming with another disc for digital copies, it wouldn't help what I already have. Think of the environmental impact of making all those extra discs. Instead of digital helping take things off of a physical medium, it makes it worse.

Really, when you buy a DVD or a movie of any kind, you're paying for a bunch of intangibles. You're paying for the license to the movie. When you buy Blu-Ray you're paying for all the licensing and crap behind it. Since that is the case, I should be allowed to legally get copies of any movie I own in that quality that I own it. I shouldn't be able to download high def versions of movies I own in standard def, but since I own a legal license of that movie, I should be allowed to have a copy wherever I want.
by dmetras October 7, 2009 2:42 PM PDT
I forgot to mention in my previous comment that the digital copy should be included on a second disc, and should not just be an access code for a digital download.
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by Dalkorian October 7, 2009 4:21 PM PDT
Doesn't matter, either way it's an idiotic MAFIAA style answer. "Ooh, it comes with a second disk that has a degraded digital copy on it, so we can charge more for it!"

Male bovine excrement!

I don't care what the MAFIAA wants to make legal or illegal anymore, I'll rip my purchased DVD's to my NAS however and whenever I feel like.
by myles taylor October 7, 2009 9:39 PM PDT
Oh yea...make more plastic things that end up in the ocean. Come on. We don't need another disc.
by EcuadorHomesOnline October 8, 2009 4:53 AM PDT
The MPAA isn't really concerned about making a backup copy of your DVD and storing it on your hard drive or NAS, or whatever. But they are rightly concerned that you will make a copy and "loan" it to a friend, post it on your website, show it in a theater or classroom, or otherwise distribute it to people other than youself. When you buy a CD, DVD, book, or whatever, you are buying the physical carrier that the media comes on and you are buying a license for PERSONAL use of that content. Unfortunately, too many people have blatently distributed billions of dollars of content that they do not own, and have made it impossible for the rest of us to do simple things like backup a DVD. With freedom comes responsibiltiy. If people don't treat content responsibly then they lose the freedom to buy it without copy protection. Don't blame the MPAA for this ruling, blame the pirates who ruined it for you and me.
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by dmetras October 8, 2009 6:32 AM PDT
In the case of a DVD, no, I suppose you wouldn't need another disc. I only mentioned a second disc because almost every DVD has special features, and there might not be enough space on the main disc for everything.
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About Media Maverick

In covering digital media for CNET News, Greg Sandoval has broken stories on Apple, Microsoft, YouTube, The Pirate Bay, and the digital efforts of the major music labels and Hollywood studios. Before that, in his first tour with CNET News, he covered e-commerce during the dot-com boom and bust. A dogged investigative reporter, he began his journalism career at the Los Angeles Times and followed that with a short TV stint at The E! True Hollywood Story. Later, he spent three years as a staff writer for The Washington Post. Greg is an alumnus of USC and was raised in Chatsworth, California, which is distinguishable only for being the porn capital of the world.

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