RealNetworks Settles with Hollywood Studios

SEATTLE: RealNetworks has agreed to cease supporting its RealDVD software and will shell out $4.5 million to settle lawsuits with the Hollywood studios and the DVD Copy Control Association.

In October 2008, the MPAA, on behalf of the studios, filed suit against RealNetworks, alleging that RealDVD allows for the illegal duplication of movies. In August of last year, the studios succeeding in getting an injunction against the software. As part of the settlement announced yesterday, RealNetworks will withdraw its pending appeal of the District Court’s preliminary injunction. The permanent injunction agreed to will prohibit RealNetworks from distributing or supporting RealDVD "or any other technology that enables the duplication of copyrighted content protected by the Content Scramble System, ARccOS, or RipGuard." RealNetworks will also pay the studios $4.5 million for their costs and fees in connection with the litigation. There are approximately 2,700 existing RealDVD customers, who will be refunded the purchase price of the product.

"We are pleased to put this litigation behind us," said Bob Kimball, the 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."