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RealNetworks Got Technology From Ukrainian Hackers, Lawyer Says

RealNetworks Got Technology From Ukrainian Hackers, Lawyer Says

RealNetworks Inc. used technology from Ukrainian hackers to build a product that copies DVDs, a lawyer for Walt Disney Co. and other Hollywood movie studios told a federal judge.

Attorney Bart Williams said RealNetworksˇ¦ product violates federal laws prohibiting circumvention of encryption that protects copyrighted works. The movie studios are suing RealNetworks to keep the $30 RealDVD product off the market, saying it encourages illegal copying and sharing of movie disks, which causes billions of dollars in lost sales. The studiosˇ¦ claim that RealNetworks used Ukrainian code is false, Bill Hankes, a company spokesman, said in an e-mail.

ˇ§RealNetworks is trying to make money off the studiosˇ¦ inventions without having to pay for it,ˇ¨ Williams said in a hearing in San Francisco federal court yesterday.

The movie studios are seeking a permanent injunction to block sales of RealDVD. RealNetworks, a seller of Internet music and video-games, says its product allows consumers to make one legal backup copy of a DVD and denies that the product is designed to get around encryption technology on DVD players that prevents copying.


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