RealNetworks tried to fight the good fight against the Motion Picture Association of America (MPAA), but in the end, someone had to lose, and that someone is RealNetworks.
A U.S. District Judge has issued a permanent injunction barring RealNetworks from selling RealDVD, the company's controversial DVD copying software. In addition, the two sides reached a settlement offer that will also have RealNetworks forking over $4.5 million to the movie studios to pay for legal fees.
"We are gratified by the successful conclusion of this important matter," said Daniel Mandil, the MPAA's general counsel. "Judge Patel's rulings and this settlement affirm waht we have said from the very start of this litigation: it is illegal to bypass the copyright protections built into DVDs designed to protect movies against theft."
Pursuing the case further likely would have cost the company in excess of $10 million, no doubt a deciding factor in conceding defeat and agreeing to the settlement, no matter how much we might not like it.
"We are pleased to put this litigation behind us," said Bob Kimball, president and acting CEO for Real. "This is another step toward fulfilling our commitment to simplify our company and focus on our core businesses. Until this dispute, Real had always enjoyed a productive working relationship with Hollywood. With this litigation resolved, I hope that in the future we can find mutually beneficial ways to use Real technology to bring Hollywood's great work to consumers."