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MPAA vs. RealNetworks

12:09 PM, September 30, 2008

Jon_healey_logo How funny is this?: The MPAA is suing RealNetworks for releasing a DVD copying program that replaces the ineffective DRM on Hollywood movie discs with a DRM that might actually work. Seems like the wrong people are bringing the lawsuit (download a copy) -- it should be the consumer foolish enough to have paid for a crippled piece of software. Nevertheless, the fact that RealDVD enables people to make a copy of standard-definition discs that they do not own, no matter how hobbled that copy may be, is enough for Hollywood to spring into action. That's because consumers might use RealDVD to make permanent copies of movies they borrow from the library or rent from Netflix, costing Hollywood untold billions of dollars. In theory, of course. 'Cause you know, people often run out to Target to buy a movie they just rented. Or something like that.

I'd planned to skip over the legal issues here, but I have to ask: What were Real's lawyers thinking?!? Didn't they read the DeCSS decisions? The 321 Studios ruling? Did they really bet the farm on the Kaleidescape case, which didn't involve the Digital Millennium Copyright Act (the Terminator of copyright laws)? Regardless of whether Real has a leg to stand on in court, the fact that a company like that would create a product like RealDVD speaks to the market opportunity. Increasingly, movie fans are becoming interested in storing their movie collections on a home computer, just as they've done with their music collections. Some studios are starting to accommodate this and include rippable files on their DVDs, but these, too, are wrapped in a DRM that can present compatibility issues for their customers. But the vast majority of movies released on disc can't be copied onto a PC, just as most downloadable movies from Hollywood can't be burned onto a DVD that can be played on a standard DVD player. The IT industry has been pushing a proposal that would enable consumers to make a limited number of copies of the discs they buy, without fueling a runaway rent-and-rip problem, but the studios have balked at the details. Sigh. Meanwhile, a growing number of consumers resort to illegal copying programs that place no limits on ripped files. Eventually, Hollywood is going to have to offer a solution that works easily for consumers, or they'll keep turning to companies like RealNetworks for help.

-- Jon Healey

Healey writes editorials for The Times' Opinion Manufacturing Division.


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Comments

The studios are claiming to be upset about the ripping that goes on, but this is really about preventing consumers from making a digital copy so that they get one more opportunity to sell you the same content again. In fact, if a consumer were to rip and return Netflix discs, it would likely mean more money for the studios because Netflix would have to increase inventory. I think Real's solution leaves a lot to be desired but at least they're getting into the deathcage with the MPAA and are trying to establish a legal precedent. We'll see whether or not they actually take this to the mat or end up whimping out like everyone else, but for the first time in a decade I'm actually rooting for Real Networks on something.

Actually this has nothing to do with selling multiple copies. The studios are already working with tech companies and retailers to develop a "buy once, use anywhere" model. And it doesn't matter what kind of DRM RealNetworks applies to the motion picture. Real never had a right to have that work to begin with, to take advantage of it being a CSS licensee to circumvent CSS. Whenever a tech company launches an "infringe now, litigate (or settle) later" model, copyright owners have no choice but to step in and defend their rights, because even if some parts of the use are acceptable, the next guy might be worse.

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