RealNetworks at last loses RealDVD lawsuit

The legal wrangling over RealNetworks' RealDVD application -- which let users make copies of their DVDs for playback on their PCs -- has finally come to a conclusion, at least for now: Judge Marilyn Hall Patel ruled last night that the big Hollywood movie studios are in the right on this one, and that RealDVD can not be sold. Per her ruling, RealDVD is indeed in violation of the Digital Millennium Copyright Act and circumvents the DVD CCA copy-protection software, a violation of the company's contract with that group.

The temporary injunction that Patel put into place against RealDVD being sold last October will remain in effect, essentially on a permanent basis, unless RealNetworks takes further action with the courts and that action is decided in Real's favor.

And while it's likely that Real will appeal the decision -- it really has nothing to lose by not doing so -- legal experts are already skeptical that it will do much good. Realistically, RealDVD in fact does violate the DMCA and the CCA, and it will likely take a challenge to the DMCA on more fundamental legal grounds if the ruling is to be overturned. The basic issue at hand is whether consumers have a right to make personal backups of the content they've paid for -- even if that technically violates laws preventing them -- and that will require a broader legal challenge, potentially at the Supreme Court level. Of course, that could take years to work out -- and by then, DVD could be all but dead, largely making the question moot.

Real issued a statement after the ruling noting that it was now exploring its options: "We are disappointed that a preliminary injunction has been placed on the sale of RealDVD. We have just received the Judge's detailed ruling and are reviewing it. After we have done so fully, we'll determine our course of action and will have more to say at that time."

More news as this story develops -- but for now things look pretty grim for RealDVD.