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."

Hit the jump and post your reaction to the conclusion of this case. 

Should consumers be the the ones to foot the bill to fight piracy? That's what will happen to UK residents should a new proposal go through that would suspend Internet service to those accused of illegally sharing music and movies online.

It's called the Digital Economy Bill and it would make it mandatory for ISPs to send warning letters to anyone caught swapping copyrighted material illegally, as well as slow or suspend connections if the letters don't work. So what's the big deal to consumers? Ministers have admitted that the initial letter-writing campaign could cost an extra $2.02 per subscription. Other estimates include 40,000 households giving up their Internet service, $2.45 billion in extra sales for the film and music industries over the next decade, and $505 million for the Government in extra VAT, the UK's Times Online reports.

While ISPs are ready to comply with the new rules, some have stepped forward in opposition of passing costs on to the consumer.

"Broadband consumers shouldn't have to bail out the music industry," said Charles Dunstone, chief executive of Carphone Warehouse, whose subsidiary TalkTalk is the No. 1 consumer provider of broadband in the UK.  "If they really think it's worth spending vast sums of money on these measures then they should be footing the bill; not the consumer.