Hollywood studios sue maker of DVD backup copy software

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Hollywood studios sue maker of DVD backup copy software
Friday, December 20, 2002

SAN FRANCISCO (AP) -- Hollywood fought back against a maker of DVD movie copying software, countersuing the company for allegedly trafficking the tools of digital theft.

Seven major motion picture studios filed a counterclaim Thursday in U.S. District Court, Northern District of California against 321 Studios, makers of DVD Copy Plus and DVD X Copy.

The software sold at stores nationwide allows the user to make a copy of a DVD to a blank CD or DVD by defeating the copy protections encoded onto the original movie disc. The studios contend that is an illegal activity.

The movie studios say the software contains the power of digital piracy, and asked the court to enjoin 321 Studios from selling it or distributing it. The studios also seek damages from any proceeds derived from the company’s software sales.

“It’s like somebody selling a digital crowbar. It’s like breaking into the castle if you will,” said Patricia Benson, an attorney for the studios.

When 321 Studios’ first product — DVD Copy Plus — came out and the company sought a declaration that it did not violate federal law, Hollywood shrugged and the studios simply sought to have the case dismissed, stating there was no “case or controversy.”

DVD Copy Plus copies DVD movies to blank CDs, though in a compressed video format.

But with the advent of 321 Studios latest offering — DVD X Copy — the stakes are a little higher. The software allows the user to burn an exact copy of the original DVD to a blank DVD, without any diminished quality or compression.

“When the second product came out and 321 Studios started marketing it very aggressively, the landscape kind of changed,” Benson said.

The studios still hold that both 321 Studios products violate the Digital Millennium Copyright Act, which makes illegal the distribution of any technology or device that allows the user to circumvent copy protections put in place by the content owner.

Elizabeth Sedlock, a spokeswoman for 321 Studios, says the company has sold about 150,000 copies of both software titles combined. The software is not illegal, she said.

321 Studios is based in Chesterfield, Mo. The studios that filed the joint counterclaim are Columbia Pictures Industries, Inc., Disney Enterprises, Inc., Metro-Goldwyn-Mayer Studios Inc., Tri-Star Pictures, Inc., Time Warner Entertainment Company LP, Universal City Studios, Inc., and The Saul Zaentz Company.
 

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