DVD copying software sold by RealNetworks Inc. appears to be an illegal pirating tool, a federal judge ruled Tuesday in a legal battle that’s been closely watched in Hollywood and elsewhere.

The Seattle-based company’s RealDVD software violates federal anti-piracy law and additionally goes against a contract RealNetworks signed to gain keys to unscramble DVDs, U.S. District Court Judge Marilyn Hall Patel said.

DVDs are embedded with anti-piracy technology that prevents copying, Patel noted.

“RealDVD products are designed primarily for circumvention of that technology,” she wrote. “This unauthorized access infringes the Studios’ rights considering it entails accessing substance without the authority of the copyright owner.”

Patel’s order bars the company from selling its software until the case is resolved, saying the movie industry is likely to prevail in its legal battle with RealNetworks.

The company’s software — which costs $29.99 — allows consumers to copy DVDs to their computer hard drives.

RealNetworks has argued that buyers of DVDs have a fundamental right to assemble digital copies for safer and more convenient storage. The company’s lawyers said the software contains piracy protections that limits a DVD owner to making just one copy.

But the studios said they have the legal right to retain complete control by how substance they’ve created is distributed.

The lawsuit has incurred widespread wrath from bloggers, digital rights advocates and groups on both sides of the political spectrum. Critics accuse the studios of stifling innovation.

The industry counters that it is trying to stamp out illegal piracy while it and partner companies develop valid copying software.

Patel initially barred sales of the software in October after the product was on the market for a few days. At the duration, the judge said it presented the software violated federal law against digital piracy, but ordered detailed court filings and a trial to better understand how RealDVD works.

The ruling was…

[Source] dhiram