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Updated 9:30 a.m. PDT with details on MPAA plans.

Well, that didn't take long. Within an hour of making its new RealDVD software available for sale on its Web site, RealNetworks has filed suit against all the major movie studios and the DVD Copy Control Association. According to Real's press release, the lawsuit "asks the court to rule that RealNetworks Home Entertainment Inc.'s RealDVD software...fully complies with the DVD Copy Control Association's license agreement." Real feels it has a strong case because its software does not break the DVD's encryption when copying it to the hard drive (and, according to the company, even adds a second layer of DRM). Real claims this method is similar to that used by Kaleidescape, a provider of high-end home media servers. (Kaleidescape's 2007 courtroom victory over the DVD Copy Control Association is cited by Real as the precedent for the RealDVD software.)

A spokesman for Real confirmed that the suit was pre-emptive, but that the company expects that "the studios will be taking action later today."

Indeed, Hollywood sources confirmed that the Motion Picture Association of America plans to file a lawsuit later Tuesday morning asking a federal court to stop RealNetworks from distributing the company's RealDVD software, which the MPAA alleges allows for the illegal copying of films and violates the Digital Millennium Copyright Act. The studios plan to request a restraining order.

Related coverage: DVD ripping goes legit with RealDVD

CNET News' Greg Sandoval contributed to this story.

(Credit: Real Networks)

Update: Not surprisingly, it appears that the availability of the RealDVD software has caused the Hollywood litigation machine to shift into high gear. Real has filed a pre-emptive suit against the studios, who are expected to countersue later today.

Three weeks ago, we told you about RealDVD, the new software package from Real Networks that lets you rip DVDs to your PC's hard drive--legally. The software is now available for direct download from realdvd.com. For a limited time, it's just $30 (as opposed to the $50 standard price). Up to four additional licenses (which allow you to play your saved movies on other PCs) are available for $20 apiece. A free 30-day trial version allows you to try before you buy.

So, what do you think: are you taking the plunge on RealDVD, or sticking with (legally ambiguous) freeware alternatives?

Read the RealDVD preview

Related coverage: Could Apple add RealDVD-like DVD-ripping to iTunes?

It's been a tumultuous few days for Yahoo--you know, with that takeover bid from Microsoft--but the company continues to shake things up internally, too.

On Monday, the company announced that it will discontinue its Yahoo Music Unlimited subscription service and will transfer its customers to RealNetworks' Rhapsody service.

In mid-2008, Yahoo Music Unlimited subscribers will be guided through an in-browser process to convert their music libraries to Rhapsody's service. For a limited time (length unknown), they'll be able to keep paying Yahoo's subscription fees, which cap out at $8.99 per month, before being required to start paying Rhapsody's $12.99 monthly fee.

Additionally, Yahoo announced in conjunction that it has acquired FoxyTunes, a browser plug-in that is compatible with multiple desktop and Web-based music players.

RealNetworks, which acquired Rhapsody when it purchased parent Listen.com for $36 million in 2003, has been partnering with both hardware manufacturers like TiVo and media companies like Viacom's MTV Networks. It's the company's best strategy for staying afloat in a digital music landscape that's not only dominated by Apple's iTunes but also seems to be gravitating toward "free," not subscription-based models.

But the announcement with Yahoo is shrouded in uncertainty, for obvious reasons. Just about anything could happen to Yahoo if Microsoft's proposed $44.6 billion acquisition goes through.

RealNetworks, ironically, has a hostile history with Microsoft, too, dating back to an antitrust scuffle several years ago that led to a partnership in which RealNetworks ultimately claimed it was shortchanged.

StopBadware.org said Tuesday it has labeled two versions of the RealPlayer media player as "badware," or spyware.

RealPlayer 10.5, it claims, "fails to accurately and completely disclose the fact that it installs advertising software on the user's computer." And RealPlayer 11, it claims, "does not disclose the fact that it installs Rhapsody Player Engine software, and fails to remove this software when RealPlayer is uninstalled." Ryan Lukin, PR manager for RealNetworks, disputed some of the claims.

Lukin said the Message Center in 10.5 feeds only news and information, product updates, movies, video clips, and is clearly identified during installation. He said the change was that the check boxes in 10.5 were prefilled (requiring you to opt out), whereas in version 11 they were blank (requiring you to opt in). Lukin disagrees that the content served through the Message Center qualified as advertising.

As for version 11, Lukin said that by virtue of being a full-service media player, RealPlayer needs the Rhapsody ActiveX component because people may want to hear Rhapsody-encoded music clips. He agrees that once RealPlayer is uninstalled, the Rhapsody software should also be uninstalled. Lukin said RealNetworks was looking into making this change in a future release.

In the meantime, StopBadware recommends that users do not install either versions of RealPlayer, "unless the user is comfortable with the software behaviors we identify or until the application is updated to be consistent with the recommendations in this report."

Full details of the StopBadware.org alert about RealPlayer can be found on the organization's site.

An extended outage at RealNetworks' Rhapsody music service has locked out an unknown number of users for the second time since March.

While the earlier problem prevented some customers from accessing the site for up to two weeks, this time executives don't know when the problem will be corrected. A handful of Rhapsody users complained on the company's message boards this week that they haven't been able to log on since Friday.

"It's a known issue," said Justine Navaja, a company spokesperson. "We don't know yet when it will be fixed, but it's only affecting a small group of users. We're doing what we can to make sure it gets fixed as soon as possible."

RealNetworks, which competes with Yahoo Music, Napster, and other subscription services, isn't saying whether the glitches are related or what caused them.

Meanwhile, Josh Solera, a Rhapsody customer from Boston, worries that unless the company corrects the problem soon, he'll be cut off from his music.

Songs downloaded off of sites like Rhapsody and Yahoo Music, are restricted by digital rights management. Licenses in the song files must be updated and that can only happen if customers are allowed to sync their computers to the service's Web site. If they can't sync within a specified time, then their music automatically locks up.

Solera, a management consultant, joined Rhapsody in October 2006 and downloads all the songs he wants for a monthly fee. On Tuesday, he tried numerous times to log on but only received error messages.

To make amends, Rhapsody issued Solera a two-week subscription credit. That may not be enough to make him happy. He said that a series of less dramatic but annoying technical issues have worn on his patience. He likes his Zen music player but the problems at Rhapsody have almost convinced him to swap it for an iPod.

"If I could get a subscription service from iTunes, I would sign up in a minute," Solera said. "I think a lot of people would."

Rhapsody, the subscription music service owned by RealNetworks, has teamed up with music blog network and social networking site Mog.com to provide, well, music.

Through this partnership, songs mentioned on Mog's blogs are accompanied by a yellow "play" button that allows users to access the full-length streaming file through Rhapsody, which offers a total of about 4.5 million independent and major-label songs in its catalog. "We couldn't be more excited to have Rhapsody enabling music listening on MOG," Mog founder and CEO David Hyman said in a joint press release. "With today's release, MOG has put more key pieces in place towards its goal of building the ultimate online music community."

Rhapsody's full-length song playback is also now integrated into Mog's "Mog-o-Matic" downloadable music discovery software, creating playlists of recommended music based on what you play on your computer or portable music player. It's social, too--you can listen to not only your playlist, but also those created by members of your friends' list on Mog. In addition, Mog users can create custom playlists of Rhapsody songs, much like Imeem's streaming lineups.

New versions of Mog-o-Matic have been released in conjunction for both the Mac and Windows operating systems; the company touts them as faster, more efficient, and more stable. At the same time, Mog has souped up its music search feature, redesigned its artist and album pages, and tweaked its page layout.

But don't hold your breath--this Rhapsody-Mog deal isn't free. Mog members can access the Rhapsody streaming songs for a 14-day free trial, after which point they have to sign up for Rhapsody's subscription service ($12.99 per month) or a 25-songs-per-month deal.

Rhapsody's subscription-based music service has, thus far, proven unable to compete with Apple's ubiquitous iTunes. As a result, the RealNetworks-owned service has attempted to compete by forging partnerships across the digital-media landscape: an impending music store deal with MTV Networks and an appearance on TiVo set-top boxes, for example.

Unfortunately for Rhapsody, it still hasn't been able to create much of a dent in the iTunes arsenal. Nevertheless, the deals keep rolling in.

On Monday, MTV Networks is set to unveil an initiative to connect its television, online, and mobile presences by helping music fans answer that crucial question--"Who the (expletive) sings that song?"

In other words, MTV Networks, the Viacom division that encompasses the MTV, VH1, and CMT brands as well as a host of other pop culture channels, is aiming to renew its focus on music by bringing lyrics to the forefront. This will begin rolling out in November and is expected to be complete by the middle of 2008.

On television, several of the networks' existing music-related programs will start to incorporate "lyrics and the artists' inspirations for their words" into their structure, and all three channels will air a new "Name That Tune" series, according to a release from MTV Networks.

Online, the networks' Web sites will feature lyrics search data from digital music database Gracenote, accompanied by multimedia artist information, trivia games, and a link to purchase the song in question--which will undoubtedly be tied into MTV Networks' Rhapsody-powered music store when that launches. And in the mobile space, curious music fans will be able to text-message inquiries (an artist's name, song name, or snippet of lyric) to a SMS code and receive a link to a mobile Web site containing data pertaining to the song and artist.

This is a potentially lucrative move for MTV Networks, which has not only struggled to bring its pop culture influence to the Web but has also fallen from some music fans' favor as its networks increasingly prioritize reality shows. Unlicensed lyrics sites are currently facing incipient copyright scrutiny--not to mention the fact that there's no such thing as a Google Lyrics Search.

Not yet, at least.

To address a security hole being exploited by hackers, RealNetworks has issued a security fix for the Windows versions of RealOne Player, RealOne Player version 2, RealPlayer 10.5 and RealPlayer 11 beta. The Windows versions of RealPlayer 8 and earlier versions of RealNetworks are not vulnerable. Linux and Macintosh versions of RealPlayer are also not affected.

The attack targets an ActiveX object installed by RealPlayer, and affects how that object interacts with the Internet Explorer browser. The exploit, if executed, can corrupt process memory and execute arbitrary code.

Affected users should upgrade to RealPlayer 10.5 or RealPlayer 11 beta and install the the latest patch, which was released Friday.

The National plays the 'Rhapsody Rocks NYC' concert on Monday night at the Highline Ballroom in Chelsea.

(Credit: Caroline McCarthy/CNET Networks)

NEW YORK--You've got to hand it to RealNetworks' Rhapsody. The subscription music service is pulling out all the stops to increase its market share--partnering with TiVo, entering a lofty deal with MTV Networks--and even if it hasn't been able to dent Apple's iTunes, Rhapsody hasn't been making itself look stupid in the process.

In fact, if the company's "Rhapsody Rocks NYC" concert here Monday night was any indicator, music aficionados are taking the company seriously.

(Credit: Rhapsody)

Monday night was the eve of this year's CMJ Music Marathon, which runs from Tuesday through Saturday. While the Rhapsody concert wasn't actually affiliated with the festival, the timing was perfect for a company that's trying to reach out to influential music lovers--just about all of them were in New York for CMJ.

The show, held at the Highline Ballroom in Manhattan's Chelsea neighborhood, featured the Brooklyn-based indie rock act The National--one of those bands that tends to get extolled by indie guru blogs like Pitchfork Media and Stereogum--with openers American Babies, The Little Ones and Pela.

The Highline, coincidentally, is so close to the New York Googleplex that you could practically see Googlers' colorful lava lamps in the building's fourth-floor windows a block away.

The venue was packed, but the people there weren't the sorts who were looking to be seen, pick up dates or start a fight with some hipsters. It also wasn't a geekfest like the Rhapsody-TiVo party earlier this month; as a tech reporter who doesn't normally cover the music industry, I saw very few familiar faces, and there was no cadre of gossiping gadget bloggers clustered by the bar.

Rather, the people who showed up to Rhapsody's pre-CMJ event were the kinds of fans who would be talking about the "really decent" acoustics of the new venue, introduce you to some guy who'd been a bass player for a dozen years and was now creating a cool new digital-music start-up, or debate the merits of pay-per-song versus subscription-based download business models. (There's a lot you can say about that.)

And while there were undoubtedly plenty of concertgoers who doubted Rhapsody's chances as an iTunes competitor, they would still have to admit that the company is building up some street cred.

Rhapsody has an impressive roster of industry veterans on its executive team, knows how to assemble a lineup of bands that even the average "Pitchfork snob" wouldn't sneer at, and can bring in a fun crowd of people to a show in the process. Even if RealPlayer still sucks, that's saying something.

The music sounded pretty good, too.