AllThingsD » RealDVD

Rent. Rip. R.I.P.: RealDVD Takes a Dirt Nap and RealNetworks Ordered to Pay Hollywood $4.5 Million

John Paczkowski — Wed, 03 Mar 2010 23:01:54 +0000

The Motion Picture Association of America has finally, and permanently, dispatched RealNetworks’s “legal” DVD ripper, RealDVD. On Wednesday afternoon, U.S. District Judge Marilyn Hall Patel, who in January dismissed Real’s antitrust claims against Hollywood, really dropped the hammer on the company. She issued a permanent injunction barring it from manufacturing or trafficking in RealDVD and ordered RealNetworks (RNWK) to pay the studios $4.5 million to reimburse them for costs incurred litigating against it.

In the end, it seems the software that former RealNetworks CEO Robert Glaser described as a “compelling and very responsible product that gives consumers a way to do something they have always wanted to do” was neither.

“We are gratified by the successful conclusion of this important matter,” MPAA General Counsel Daniel Mandil said in a statement. “Judge Patel’s rulings and this settlement affirm what we have said from the very start of this litigation: It is illegal to bypass the copyright protections built into DVDs designed to protect movies against theft. We will continue to vigorously pursue companies that attempt to bring these illegal circumvention products and devices to market.”

Below, a copy of Patel’s order:

RealDVD CourtOrder –

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RealNetworks' Rob Glaser Talks About Giving the Internet a Voice and, Yes, Woolly Mammoths!

Kara Swisher — Fri, 15 Jan 2010 13:20:16 +0000

Rob Glaser (pictured here) called BoomTown when he landed in Washington, D.C., only a few hours after he announced Wednesday he was stepping down as longtime CEO of RealNetworks (RNWK).

Digital Daily reported there was some contention between Glaser and the Real board around his departure from the Seattle-based company he founded 16 years ago, a move that has actually been in the works for some time.

While Glaser did say that he had been through the “most intense two weeks of my life,” leading up to that, he declined to comment more about the specifics of his leaving.

That was fine with me, because–although execs come and go in various and sundry ways–you simply have to give Glaser credit for his pioneering work in bringing both audio and video to the Web.

So Glaser and I talked about this and more, from what he thinks are the key highlights of his Internet career until now to what he plans to do next.

First and foremost, Glaser did “give the Internet a voice,” as I wrote in a 1998 profile of him for The Wall Street Journal about his company’s introduction of its first RealAudio product:

“RealAudio was greeted with more than a little disdain from the Internet elite because it was a tinny and unsatisfying experience for most users. But it gave the Internet a voice, and Mr. Glaser kept plugging away, improving fidelity and striking deals with more content providers to use it on their Web sites.”

Glaser said that was the simple idea behind Real, to “turn the Web from text and static links to a dynamic media space for the mainstream to enjoy.”

That effort began in earnest in the mid-1990s, he noted, by selling “tech enablement,” which simply meant hawking servers and software to companies interested in adding audio and, later, video, to their Web sites.

So successful was Real then that many big companies tried to buy it for huge sums. But ever the aggressive entrepreneur, Glaser never sold–unlike Mark Cuban at Broadcast.com–although many wished he had.

But that was simply not his style, he said; plus, business was booming and it was “like selling pickaxes during the Gold Rush.”

It is an apt metaphor since the next major moment for the company came when the Web 1.0 bubble burst in 2000.

“A lot of great–and also not so great–companies just died,” he said.

To avoid that fate, “We pivoted in a hard way to consumer services and avoided the tailspin,” Glaser added. “It was kind of like when the woolly mammoth evolved into an elephant, while the pterodactyl did not turn into anything.”

That meant creating a variety of consumer-focused media offerings that used Real technology, such as its casual games business and its Rhapsody music service.

Real also shifted its tech licensing business to a carrier services model, Glaser said.

He regularly tangled with Microsoft (MSFT), where he started his career as a very brash 21-year-old. The software giant targeted Real’s business, but also cooperated with the company at times.

And, while the games unit and Rhapsody hit some major bumps, Real did score a whopping $761 million antitrust settlement in 2005 from Microsoft.

But that win was some time ago, and Real idled too much, as did its stock, in the following years, even as Glaser plugged away at creating a variety of new businesses and strategies.

Some were off limits, he said when I asked him why he did not come up with a service like YouTube, given Real’s advantages in video early on, noting that his public company could never had created a service that so antagonized Hollywood partners.

But Glaser did just that more recently with one such innovative idea for a “legal” DVD ripper, called RealDVD.

Though very interesting, RealDVD hit the skids quickly when a federal judge last week dismissed Real’s claims against Hollywood studios seeking to shut down the service before it could be widely distributed.

While that specific defeat was not the reason for his leaving RealNetworks, the idea that it was time to bring new blood to the company finally gained traction with investors, the board, employees and, yes, Glaser too.

What the notoriously hard-charging executive–“My intensity sometimes manifested itself in less positive ways,” Glaser conceded in my 1998 interview with him–will do next is anyone’s guess.

Including his own.

Glaser noted that he would remain chairman of Real, although his day-to-day engagement there is now over.

“It is a big transition for me, because I am closing a chapter I have been in for a very long time,” he said, adding that he would probably do more philanthropic and political work.

(That’s no surprise. After all, Real was once called Progressive Networks, after his liberal politics, and Glaser once had a newspaper column called “What’s Left” while at Yale University.)

Glaser said that on the flight to Washington he thought about the advice Lotus founder Mitch Kapor, one of Real’s earliest investors, gave him when he left Microsoft and was thinking about his next step:

You should take time to figure out what you want to do next and know why you want to do it. Because if it’s successful, once you get going you won’t have time to think through those issues as clearly as you can now.

That’s pretty much been Glaser’s modus operandi over his many years at Real and in the larger Internet space: He pushed his vision of a live Internet forth, he never cut and ran, he never sold, he kept pushing forward.

And you have to admire that kind of gumption, no matter the outcome.

In any case, it is likely Glaser will keep doing so in the years to come.

In fact, pointing out that the movement of entertainment and content online has “come a long way, but still has an even longer way to go,” Glaser started rattling off ideas about where the online media sector needs to go in exactly the same fashion I described a dozen years before.

I described Glaser then as: “speaking in staccato bursts and radiating so much intensity that his face resembles a clenched fist.”

In other words, for all the the lively entrepreneur has been part of as a key pioneer in the development of the Internet, some things will never ever change.

If you want to see Glaser in action, check out these three videos of him, two from the fifth D: All Things Digital conference and one of him talking to me about RealDVD when he introduced it at Demo:

Session interview at D5

[ See post to watch video ]

Demoing RealPlayer 11 at D5

[ See post to watch video ]

Talking about RealDVD

[ See post to watch video ]

Rob Glaser Eased Out as RealNetworks CEO

John Paczkowski — Wed, 13 Jan 2010 20:50:56 +0000

Rob Glaser is stepping down as CEO of Real Networks, the company he founded in 1994. Sources say the move was instigated by his own board, but that he cooperated with the decision and was involved in the transition.

Glaser will be replaced by Robert Kimball, a well-liked executive who most recently served as general counsel and executive vice president of corporate development at RealNetworks (RNWK).

Glaser, who will remain chairman of the Seattle-based Internet company, owns 38.4 percent of Real’s shares, making him by far the largest investor.

His move follows other significant news at Real: Last week, a federal judge dismissed its claims against Hollywood studios in the RealDVD case.

A few days earlier, COO John Giamatteo said that he would step down; the company announced that news yesterday afternoon.

But it is Glaser’s departure that is most important, given that he has been an innovative, pioneering and high-profile Internet leader for so long. Nevertheless, he eventually had to answer for problems with performance.

In fact, Glaser and the board had been talking for some time about making these changes, although it came much more suddenly than Glaser preferred, according to several sources. He had wanted to do a search for a new CEO before he left and make the shift less abrupt.

But the board–with the message coming from director Jonathan Klein, co-founder and CEO of Getty Images–felt a quicker change was needed.

“It’s a typical case of a founder and Internet visionary who can’t convert it to the bottom line. There was a great deal of admiration and respect for Rob, which delayed the decision, but eventually you can’t ignore the results,” says a person familiar with the company. “This move was a long time postponed, because he always had another good idea. But you have a staff whose options are all underwater, and the conversion of gross into net profit was not happening.”

It’s unclear when Glaser’s board informed him of the decision, but sources say that after processing the news, Glaser cooperated with and helped in the transition. He represented the company in a series of meetings at last week’s Consumer Electronics Show without letting on that he was on his way out.

He did, however, post an untypically melancholy message on Twitter yesterday:

Some Real employees and investors have had grievances with the company’s founder for years. A long string of former Real employees, for example, describe Glaser as a cantankerous boss, and Real’s stock price has withered since 2006, when it nearly broke the $12 mark.

The stock is now trading below $4.

And while Real was a genuine pioneer in Web video software and an early player in Web music services–the company was originally called Progressive Networks after Glaser’s political bent–it has been idling for many years.

For a while, for example, it was investing time and money in Web-based “casual games” and had filed to spin off that unit in 2008. But those plans were iced by the recession.

Meanwhile, RealNetworks split its Rhapsody music service into a joint venture with Viacom (VIA) unit MTV, but that service has also stalled, and the two partners have been trying to renegotiate the terms of their partnership.

Real’s crowning achievement of the past few years: The whopping $761 million antitrust settlement it won in 2005 from Microsoft (MSFT), Glaser’s former employer.

Here’s Glaser’s memo to his staff, followed by a note from Robert Kimball, and, finally, the company’s press release.

From: Rob Glaser
Sent: Wednesday, January 13, 2010 1:35 PM
To: All RealNetworks Employees
Subject: Important Personal News

Team,

Today we’re announcing something that I’ve been thinking about for a long time. Nearly 16 years after founding RealNetworks in 1994, I’ve decided to step aside from day to day operations. Accordingly, we’re announcing today that I am relinquishing my CEO job and will focus on my role as Chairman of Real’s board.

A decision of this magnitude produces a complex bundle of feelings. First, profound gratitude for the amazing colleagues I’ve had the opportunity to work with during a chapter that has turned out to be a third of my life. I am incredibly proud of the creativity, persistence, and commitment to excellence that our teams around the world bring to the table every day.

Second, deep appreciation for the billions (yes, billions!) of consumers that use or have used our products, the hundreds of millions of consumers that use our products every year, and the tens of millions of consumers that use our products and services every month. I am also grateful for the trust placed in us by our fantastic carrier and other distribution partners. Very few companies get to have the global reach and impact that we do.

Third, great confidence in the team that will be running the company day-to-day. As we kick off a search for my permanent successor, Real will be led by Bob Kimball as Acting CEO. Bob is one of the most passionate, hard-charging, and lucid executives I’ve ever had an opportunity to work with, and given his decade of leadership at Real, I am confident that the company won’t skip a beat.

Fourth, the bittersweet feelings that come from closing the book on a 16 year labor of love, emphasis on both labor and love. I feel very fortunate that as Chairman I will still get to carry the torch for everything that has made and will continue to make our company great. And with 2 small children and a third on the way, I feel very lucky that the rhythm of my life can now change, at least for a time, to allow our family to do some things that might not otherwise have been possible. I also look forward to spending more time on civic and other projects outside of Real.

While there’s never an ideal time to make a change like this, this is as good a time as any. We’ve weathered the brunt of the Great Recession and have done what we said we wanted to do, which was to keep our core solid while also building for the future. We’ve also undertaken an extremely rigorous strategy review and have a very exciting road map for the future that you’ll hear about in the days and weeks ahead. And the start of a new decade is a good time, poetically, to pass the baton.

Thanks again for everything, and I hope to see all of you soon.

Rob

From: Robert Kimball
Sent: Wednesday, January 13, 2010 1:07 PM
To: Real@real.com
Subject: Important News

Dear Team,

Rob Glaser, our founder, has resigned as CEO effective today. Rob is sending out a separate note discussing his decision. While Rob will no longer have an operating role, he will continue to serve as Chairman of the Board. We look forward to continuing to work with Rob and I want to thank him for making RealNetworks what it is today and leaving us with a strong foundation upon which to build.

The Board has asked me to assume Rob’s executive responsibilities and has appointed me President and acting CEO. The Board of Directors will consider candidates for the permanent CEO role in the coming months. The senior executive team is galvanized and committed to making RealNetworks a company where customers love our products, employees are excited about being here, and we create value for our shareholders. We want RealNetworks to be a more focused, faster growing and profitable company. We are going to simplify the way we do business, empower employees to do their jobs, and hold people accountable for their results. I look forward to working with all of you to transform RealNetworks as part of this next chapter.

As part of transforming RealNetworks, I am personally committed to providing you with candid, clear and frequent communication so you know where we stand and where we want to go. In the coming weeks, we will be sharing with you changes in the way we operate and organize our business. And we want you to talk to us. Tell us when we are succeeding and when we are failing to make the changes necessary to transform. We plan to hit the ground running and we will need your help and input to succeed.

As you learned yesterday, John Giamatteo announced that he will be leaving in April to pursue another opportunity. John has built a great team here are Real and is completely supportive of the executive team going forward and will be working closely with all of us to ensure a smooth transition. Finally, I want to thank all of you for your contributions to RealNetworks. Our employees are our greatest asset and I humbly ask for your support and commitment to build our company into the great company we all know it can be.

Best to all,

Bob

REALNETWORKS’ FOUNDER ROB GLASER STEPS DOWN AS CEO

Company appoints Robert Kimball President and Acting CEO

SEATTLE–January 13, 2010 Digital entertainment services company RealNetworks, Inc., (Nasdaq: RNWK) announced today that founder Rob Glaser has stepped down as CEO. He will remain chairman of the board of directors of RealNetworks. The company also announced that its board of directors has appointed Robert Kimball president and acting chief executive officer. The board also appointed Mr. Kimball to the board of directors.

“After nearly 16 years, I’ve decided it’s time for me to step away from day-to-day operations,” said Glaser. “I’m grateful to all of our stakeholders–customers, partners, shareholders, and most of all, employees–for the support and commitment they’ve given to RealNetworks. I remain committed to the company and look forward to continuing to serve in my capacity as board chairman.”

In February 1994, Mr. Glaser founded what was then known as Progressive Networks, a pioneer in the field of digital audio and video technology for the Internet. Under his leadership, Real has grown into a multinational company, providing digital entertainment products and services to hundreds of millions of consumers around the world.

“Few people have changed an industry and created a unique experience for billions of people,” said Jonathan Klein, a board member of RealNetworks and the co-founder and CEO of Getty Images. “Rob has changed the face of digital entertainment with RealNetworks’ streaming media products. At the same time Rob has had a profound impact on politics and philanthropy. I’m sure he will continue to do this extraordinary work as well as spending time with his wife and young children. We are grateful for all he has done for the company, the industry and employees, and are pleased that he will continue to serve on the board.”

Bob Kimball joined the company in 1999 and has been a member of the senior executive team since 2003. He most recently served as general counsel and executive vice president of corporate development at Real. “In the decade he’s been at Real, Bob has proven to be an outstanding business executive and leader, and under his leadership the company won’t skip a beat,” said Mr. Glaser. “Our board has great confidence in Bob, and he will be a candidate for the permanent CEO position as part of a formal search process that will begin soon.”

“I look forward to the opportunity ahead,” said Mr. Kimball. “Real has a great team in place, a strong financial position, close customer relationships and fantastic products. We plan to transform Real into a more focused and more profitable company that delivers value to our shareholders.”

[Peter Kafka contributed to this report.]

Google vs. China

John Paczkowski — Wed, 13 Jan 2010 20:49:54 +0000

[ See post to watch video ]

Judge: RealDVD Antitrust Case Real Stupid

John Paczkowski — Mon, 11 Jan 2010 19:02:33 +0000

The federal judge presiding over the RealNetworks legal battle with Hollywood has confirmed what even the company’s attorneys have likely known all along: There was no chance whatsoever the company would prevail in its claims against the film industry, and the plight in which RealNetworks (RNWK) now finds itself is entirely its own doing.

On Friday, Judge Marilyn Patel, who in 2000 issued the injunction that shut Napster down, dismissed Real’s antitrust claims against Disney (DIS) and other movie studios over their alleged collusion to block RealDVD, the company’s “legal” DVD ripper.

The studios and the DVD Copy Control Association, she found, were well within their rights to band together to prevent what they believed to be illegal copying of their content. Real was foolish to think otherwise, and its claim that it has suffered significant losses because of its inability to sell a product of questionable legality is, in a word, ludicrous.

Which is not to say that consumers should not have the right to copy and back up films they have legally purchased, just that the courts have never looked favorably on those who claim that right through a technology that bypasses DVD copy protection and consequently violates the Digital Millennium Copyright Act.

“Real’s purported injury stems from its own decision to manufacture and traffic in a device that is almost certainly illegal under the DMCA,” Patel wrote. “In the circumstances of this case, there is no allegation Real could make that would give it antitrust standing.”

Court Opinion Dismissing Realnetworks Antitrust Case

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1000 AOL to Employees Go the Way of Dial-Up

John Paczkowski — Mon, 11 Jan 2010 18:00:28 +0000

[ See post to watch video ]

RealNetworks Wants a Convergence Play–Just Like Everyone Else

Peter Kafka — Mon, 04 Jan 2010 11:30:37 +0000

Why did RealNetworks buy Varia Mobile, a software company best known for producing an MP3 player that sold poorly?

To work on a mysterious cloud-computing project, which has something to do with mobility and entertainment. That’s per TechFlash, which reported on the deal Sunday.

Probably best not to make too much of this one. Given that Real didn’t announce the deal (let alone report it to the Securities and Exchange Commission), it can’t be for much money (note that the last purchase Real bothered to announce was for $4 million). And the Lala deal aside, you can “acqhire” a group of engineers without laying out a lot of cash these days.

But it is a good reminder that RealNetworks (RNWK) wants to make itself a player in the next phase of entertainment–the one where you buy or rent the stuff over the Web and consume it wherever you want.

That’s at least partly why CEO Rob Glaser is still wrangling with Hollywood over his “RealDVD” system, which is supposed to let you rip copies of DVDs you already own. Because once you’ve done that, the next logical step is moving the file to your iPod or your tablet or just to different rooms in your house.

The problem, of course, is that everyone else wants to play there, too. And many already are in some form.

There are the hardware guys like Sony (SNE), who are selling TV sets and game consoles with Web connections, and cable guys like Comcast (CMCSA), who already control the pipe that brings the stuff to your living room. And telcos like Verizon (VZ), which want to do the same thing. And, of course, retailers like Apple (AAPL), Amazon (AMZN) and Netflix (NFLX), which are already selling digital entertainment. Etc.

During the first Web boom, it seemed Real would be in this list as well, since its back-end technology and its RealPlayer were commonly used to move entertainment around the Internet. Now the company is best known for its Rhapsody music service and its collection of casual games, but it doesn’t have pole position in either sector.

You’ll hear plenty more about this stuff over the next week at the Consumer Electronics Show, which kicks off Wednesday. But Real will probably be mum.

The company doesn’t have any announcements planned and isn’t renting space at the convention’s main show floor. Not a terrible idea to lie low at CES, where lots of people make a lot of noise about stuff that never comes to pass. But at some point, it will be interesting to see how Real plans to compete.

The Judge Was Wrong: RealNetworks's RealDVD Appeal Document

Kara Swisher — Tue, 10 Nov 2009 23:48:40 +0000

RealNetworks just lobbed its appeal to the U.S. Court of Appeals in the case revolving around its DVD-copying software, RealDVD.

A U.S. District judge issued a preliminary injunction against RealNetworks (RNWK) in August to stop sales, and renewed it in October.

In a typical Hollywood move, the Motion Picture Association of America said the software, which allows copying of DVDs, violated the Digital Millennium Copyright Act.

In the appeal, RealNetworks said the judge was using the wrong law, that the software was not causing damage to the studios and that the technology is in the public interest and constitutes fair use.

“The District Court committed multiple legal errors in granting Appellees’ motions for preliminary injuction,” reads the appeal.

But, check out the whole appeal and below it, a video interview with RealNetworks CEO Rob Glaser that BoomTown did when RealDVD was launched a little over a year ago:

RealDVD Appeal

[ See post to watch video ]

RealNetworks and Hollywood Spar Over DVD Ripping

Sarah McBride and Yukari Iwatani Kane — Fri, 24 Apr 2009 23:02:41 +0000

Starting late last year, movie studios began peddling premium-priced DVDs that come with the right to download a digital copy of the movie onto a computer.

Now a federal judge will weigh in on whether the studios are the only ones who can legally make those copies, or if other companies can jump on the bandwagon.

Judge Marilyn Hall Patel of U.S. District Court in San Francisco on Friday will open a hearing to evaluate whether RealNetworks (RNWK) can sell a computer program called RealDVD that allows consumers to copy DVDs onto computers.

Last fall, the studios won a temporary ban on the sale of RealDVD. If Judge Patel rules the program can go back on the market, it could hamper Hollywood’s efforts to cash in on consumer demand for digital copies of the DVDs they buy.

Read the rest of this post on the original site

Weekend Update, 10/10/08

John Paczkowski — Sat, 11 Oct 2008 07:00:25 +0000

The best thing that can be said of the week ending Oct. 10, 2008, is this: It’s over.

Marked by panic selling and wet-your-pants fear, it was one of the worst weeks in the financial world’s history–a week that cut the legs out from under Google (GOOG), beat Yahoo until its market cap bled purple and caused the Dow Jones Industrial Average to swing more than one thousand points on an intra-day basis.

It was a week that saw Sequoia Capital warn its portfolio companies to prepare for a protracted downturn or, in the words of partner Michael Moritz, be “spattered on windshields and radiator grills and be forgotten.” Turns out Bubble 2.0 sounds a lot like Bubble 1.0 when it pops.

Beneath the screams of agony echoing across Wall Street, there was other news worth noting:

Advanced Micro Devices (AMD) announced plans to spin off its manufacturing operations.
“Legal” turned out to be a poor choice of adjectives for RealNetworks’ RealDVD (RNWK), the company’s new “legal” DVD ripper. A judge extended the temporary restraining order barring the company from distributing it.
This just in: Time Warner’s (TWX) AOL and Yahoo (YHOO) are still talking about a merger and Generalissimo Francisco Franco is still dead.
Where is Microsoft (MSFT) in all this? Sitting on the sidelines hoping the deal will go through.
Finally, activist investor Eric Jackson, the creator of the Yahoo! Plan B investor community, revealed Yahoo! Plan C: his hedge fund’s divestiture of its Yahoo stake.

Splitsville

John Paczkowski — Tue, 07 Oct 2008 18:00:17 +0000

[ See post to watch video ]

Rent. Rip. Restraining Order.

John Paczkowski — Mon, 06 Oct 2008 18:38:41 +0000

The legal broadside Hollywood lobbed at RealNetworks (RNWK) last week has upset the company’s carefully prepared plans to offer a mainstream means of legally copying DVDs. A judge has issued a temporary ban on sales of Real’s RealDVD software in the wake of a lawsuit brought against it by the Motion Picture Association of America. Point your browser at the RealDVD site today and you’ll be greeted with the following message:

Due to recent legal action taken by the Hollywood movie studios against us, RealDVD is temporarily unavailable. Rest assured, we will continue to work diligently to provide you with software that allows you to make a legal copy of your DVDs for your own use.”

Good luck with that, folks.

As I’ve noted here before, RealDVD is a nice idea–a $30 software program that easily copies entire DVDs, right down to the menus, bonus features and cover art. And it does so in an ostensibly legal way. What it doesn’t do, though, is prohibit users from ripping DVDs that they rent. Effectively, users are on the honor system, which isn’t exactly a Hollywood-approved DRM scheme.

Rob Glaser Talks About Steal–Oops–RealDVD

Kara Swisher — Thu, 02 Oct 2008 19:12:15 +0000

When he debuted his company’s new DVD copier at DEMOfall recently, called RealDVD, RealNetworks’ Rob Glaser did a video interview with BoomTown about it.

And now that RealNetworks (RNWK) and Hollywood are cross-suing each other over RealDVD–in the latest clash over the still-contentious copyright issue that separates the tech and entertainment industries–it’s time for a replay!

The RealDVD software allows a user to rip all the parts of a DVD, including cover art, onto a computer. It costs about $30.

Hollywood studios, which filed a lawsuit in federal court Tuesday, maintain that RealDVD is illegal, and one of their reps called it “StealDVD.”

Haw, haw. This is what apparently passes for clever in Hollywood these days.

But before the entertainment giants’ lawsuit, RealNetworks filed its own suit, claiming it was protecting the fair-use rights of consumers to make copies of content they had purchased.

To avoid violating digital rights management schemes, RealDVD has added its own DRM layer, preventing ripped DVDs from being copied and shared and imposing further barriers to piracy.

But there are still possibilities for illegal ripping, of course, because RealDVD users must promise not to copy videos they don’t own.

No surprise–an honor-system product that makes it even easier to copy DVDs was not exactly welcome by Hollywood, which has been trying to protect its movie revenues from suffering the same fate as the music industry via rampant CD-ripping.

Thus, the typical mainstream media reaction to the inevitability of consumers wanting to digitize content: More lawsuits!

In any case, here’s the video of Glaser talking about RealDVD:

[ See post to watch video ]

StealDVD? Well, You Were Asking for It…

John Paczkowski — Tue, 30 Sep 2008 19:24:28 +0000

Well, that didn’t take long at all, did it? The Motion Picture Association of America has filed suit against RealNetworks (RNWK), seeking an injunction to stop the company from distributing its RealDVD DVD-ripping software. The MPAA argues that RealDVD violates the Digital Millennium Copyright Act because it circumvents the copyright protection that protects DVDs from piracy.

The MPAA “RealNetworks’ RealDVD should be called StealDVD,” said MPAA Executive Vice President and General Counsel Greg Goeckner in a statement. “RealNetworks knows its product violates the law and undermines the hard-won trust that has been growing between America’s movie makers and the technology community. The major motion picture studios have been making major investments in technologies that allow people to access entertainment in a variety of new and legal ways. This includes online video-on-demand, download-to-own, as well as legitimate digital copies for storage and use on computers and portable devices that are increasingly being made available on or with DVDs. Our industry will continue on this path because it gives consumers greater choices than ever. However, we will vigorously defend our right to stop companies from bringing products to market that mislead consumers and clearly violate the law.”

The Day After

John Paczkowski — Tue, 30 Sep 2008 18:00:35 +0000

[ See post to watch video ]

Sue. Rent. Rip. Return.

John Paczkowski — Tue, 30 Sep 2008 17:01:55 +0000

Turns out RealNetworks Inc.’s new DVD ripper, RealDVD, is as legal as its creator is litigious. RealNetworks (RNWK) debuted RealDVD this morning and along with it, a preemptive lawsuit against the Hollywood interests that will inevitably attempt to litigate it into oblivion. Brought against the DVD Copy Control Association and a who’s-who of major studios, the suit asks the court to rule that RealDVD complies with the DVD Copy Control Association’s license agreement not only by retaining the “content scramble system” used to protect DVDs, but by enhancing it with an additional layer of digital rights management protection.

“RealNetworks took this legal action to protect consumers’ ability to exercise their fair-use rights for their purchased DVDs,” the company said in a statement. “We are disappointed that the movie industry is following in the footsteps of the music industry and trying to shut down advances in technology rather than embracing changes that provide consumers with more value and flexibility for their purchases. For nearly 15 years RealNetworks has created innovative products that are fully legal, great for consumers, and respectful of the legitimate interests of content creators and rights holders. RealDVD follows in that tradition. We expect to successfully defend our right to make RealDVD available to consumers and consumers’ rights to use it.”

We’ll see, I guess. Clearly the silly little “RealDVD is for saving a DVD you own” disclaimer attached to the software isn’t going to cut it with Hollywood. I imagine we’ll be hearing from the Motion Picture Association of America before the day is out.

RealNetworks' Rob Glaser Talks About RealDVD!

Kara Swisher — Tue, 09 Sep 2008 21:15:49 +0000

At DEMOfall yesterday, RealNetworks’ Rob Glaser chitty-chatted with BoomTown about a lot of things, such as the Presidential race (he is a big Obama supporter), his twins and more.

But in this video interview, Glaser talked about RealDVD, the company’s new “legal” DVD copier, which was launched here in San Diego yesterday.

At an introductory rate of $30, buyers can use the software to rip all the parts of a DVD, including cover art.

To avoid violating digital rights management schemes, RealDVD adds its own DRM layer, preventing ripped DVDs from being copied and shared and imposing further barriers to piracy.

But there are still possibilities for illegal ripping, of course, because RealDVD users must promise not to copy videos they don’t own.

Thus, an honor-system product that makes it even easier to copy DVDs might not be so welcomed by Hollywood, which has been trying to protect its movie revenues from suffering the same fate as the music industry via rampant CD-ripping.

Here’s the video of Glaser talking about RealDVD:

[ See post to watch video ]

One–Make That Two–Words: Plastic Logic

John Paczkowski — Mon, 08 Sep 2008 18:00:07 +0000

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Rent. Rip. Return.

John Paczkowski — Mon, 08 Sep 2008 14:19:24 +0000

RealNetworks Inc. (RNWK) CEO Rob Glaser calls RealDVD, the company’s new “legal” DVD ripper, “a compelling and very responsible product that gives consumers a way to do something they have always wanted to do.” But really, what it’s giving them is a more cumbersome way of doing something that they’ve already been doing for years now with DVD Decrypter, AnyDVD, Handbrake, MacTheRipper, RipIt and the like.

Like other DVD rippers, the $30 software program easily copies entire DVDs–right down to the menus, bonus features and cover art. But unlike those rippers, RealDVD does so in an ostensibly legal way. It copies them without breaking their digital rights management schemes by installing a second layer of DRM on the ripped files that prevents users from sharing the DVDs online.

What it doesn’t do, though, is prohibit users from ripping DVDs that they rent. Effectively, users are on the honor system. And last I checked, the honor system isn’t a Hollywood-approved DRM scheme.