It wasn't long ago that RealNetworks and its kludgy Player software were the bane of computer users everywhere. But, a few legal accusations later, Real is now the apple in the eye of every fair use advocate, fighting for the right for users to make legal copies of DVDs -- so long as you make them through its RealDVD software, of course. The company is now escalating its legal battle against Hollywood big wigs, suing the six major movie studios and the DVD Copy Control Association for anticompetitive activity, asking for monetary damages due to the sales it has lost since the industry asked for that initial injunction against RealDVD. We're not entirely sure who's going to come up on top of this one, but if Kaleidescape can survive the CCA, maybe Real can too.

Let's face it -- quite a lot is resting on the outcome of this case. For months now, RealNetworks has been unable to legally sell its RealDVD movie ripping software after a court issued a temporary restraining order that remains valid until it's decided if the application violates the DMCA (Digital Millennium Copyright Act). Now, the software is finally having its day in court, and the outcome could shape the future of the DVD player (for better or worse). You see, Real has already assembled a prototype Facet device that hums along on Linux; essentially, this DVD playing machine would sell for around $300 and could store up to 70 movies internally. On the surface, this sounds entirely like a poor man's Kaleidescape, but only time will tell if The Man agrees. Cross your fingers folks, we get the feeling fair use advocates are going to need the luck.

It look like Hollywood's won the first round in court against RealNetworks' RealDVD DVD-ripping software -- Judge Maralyn Hall Patel (of Napster fame, remember her?) ruled yesterday that a temporary restraining order blocking sales of the software will stay in place indefinitely until she decides whether it violates the DMCA. The central issue is whether or not making a bit-for-bit copy of a DVD constitutes circumventing copy protection: the studios claim the encryption keys must be read off the disk under the terms of the license agreement, and RealNetworks obviously disagrees. There's a lot at play here, including the studios' argument that fair use doesn't serve as a defense to backing up DVDs, so we'll be tracking this one closely -- it's sadly clear to us that Hollywood's fight here is against consumers having flexibility with their media, since it lost the battle against actual piracy ages ago.

We knew Hollywood wouldn't let RealNetworks sell its RealDVD DVD-ripping-and-archiving software without a fight, and right on schedule, six major studios have filed a lawsuit seeking to prevent it from being sold. Of course, RealNetworks has been planning on hiding behind that Kaleidescape ruling all along, but straight CSS circumvention isn't really what's at the heart of the suit: according to the studios' request for a restraining order, consumers won't be able to contain themselves in the face of RealDVD's voodoo magic and will start ripping rental DVDs en masse -- seriously, the suit calls the incentive to do so "all but overwhelming." Here's a hint, guys: if you believe the temptation to do something is that strong, it probably means you can get people to pay to do it -- and you should probably be working out a business model that embraces consumers instead of funding new BMWs for your lawyers while actual piracy tears down the fragile house of cards your entire industry is built on. Or you know, whatever.

RealNetworks, the company you love to hate, is back with a new product sure to capture the attention of Hollywood and its MPAA thugs. For $30, RealDVD plans to do what DVD Jon enabled years ago -- namely, making digital copies of your DVDs. Unlike Jon's illegal DRM stripping software, RealNetworks' approach lays on additional DRM allowing you to make a single copy, only, playable on the machine doing the rip -- up to five additional Windows PCs can be authorized at a cost of $20 per.

Real thinks that the use of the additional DRM coupled with Kaleidescape's legal victory -- a ruling that seemingly authorizes users to copy DVDs for their own personal use -- will help it escape the wrath of the MPAA. Not that RealNetworks has ever been afraid of a fight as demonstrated by its 2004 scuffle with Apple when it began offering software that allowed iPods to play Real's DRM'd content. Good thing too because we're pretty sure that shutting down the planned start of RealDVD's sales at the end of this month is the number one topic around the bunny-juice dispensers at the MPAA offices this morning.

[Via cnet]