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Judge's Top Secret Decision Blocks Sale of DVD-Copying Software

By Ryan Singel, Kevin Poulsen, Sarah Lai Stirland, Kim Zetter, and David Kravets

A federal judge has issued a secret, interim order blocking the sale of RealNetworks' DVD-copying software, RealDVD, two sources said Monday.

In an unusual move, the judge presiding over the MPAA's federal copyright lawsuit against RealNetworks also instructed both parties not to disclose the existence of the restraining order to the public.

U.S. District Judge Marilyn Hall Patel, who previously presided over the original Napster litigation, issued the tentative decision late Friday, the sources said. As of this writing, the electronic court docket does not reflect a sealed decision in the case, although RealNetworks informed consumers on its websitethat, "Due to recent legal action taken by the Hollywood movie studios against us, RealDVD is temporarily unavailable."

But in a court filing(.pdf) Monday, RealNetworks for the first time publicly acknowledged Patel's decision granting a temporary restraining order.

"Defendants have already caused significant irreparable harm to Real by prevailing upon this court to institute a temporary halt to sales of RealDVD since the evening of Friday, October 3, 2008," RealNetworks wrote Patel. "The grant of a further TRO or preliminary injunction now will devastate Real's ability to ever launch RealDVD successfully or to capitalize on its lead over competitors."

The MPAA, in seeking to block RealDVD sales, claims(.pdf) the software is illegal and a violation of the Digital Millennium Copyright Act. The group says the software illegally circumvents technology designed to keep DVDs from being copied. The studios also claim RealNetworks, which released the software September 30, is in violation of its contract with the DVD Copy Control Association, which granted RealNetworks a license to descramble encrypted DVD codes for the production of a DVD "player."

RealNetworks denies it violated a contract, and says its software does not circumvent any anti-copying technology.

Patel, a President Carter appointee, has scheduled a 2 p.m. hearing on Tuesday to hear the MPAA's plea to keep the DVD-copying software out of the marketplace permanently. The hearing is noticedon Patel's calendar.

Why the interim decision is under seal is anybody's guess.

Photo: john_a_ward

Full post as published by Threat Level on October 06, 2008 (boomark / email).