RealNetworks Drops RealDVD, Pays $ 4.5 Million

RealNetworks has agreed to throw its controversial DVD copying software RealDVD to the thrash bin. The company finalized a settlement with major film studios to the tune of $ 4.5 million, ending more than a year of legal battle. Real will also stop selling remaining copies of RealDVD, which the company sold in September last year.

Sale of the software, which was Real’s attempt to legitimize the copying of DVDs to personal computers, was stopped just four days into its release after Hollywood studios secured a restraining order and an injunction order against the Seattle-based company. The company had argued that it was merely giving consumers a chance to legally back up their DVD copies, a view that the court rejected. Around 2,700 copies of RealDVD were sold in that four days. RealNetworks had planned to appeal the injunction order issued against it, but eventually changed its mind this week.

RealNetworks acting chief executive Bob Kimball said the company was glad that the legal dispute had been settled.