RealNetworks won round one of its case against Streambox on Friday, when a federal court in Seattle extended a temporary restraining order barring the company from distributing its software.
In a suit filed last month, RealNetworks claimed the Streambox software suite illegally disables a copy protection system used to secure RealAudio and G2 files as they stream over the Net.
The Streambox software hacks through a RealNetworks security layer and allows users to save Real streams into downloadable formats such as MP3.
"We are pleased that the TRO [temporary restraining order] has been extended. RealNetworks brought this suit to ensure that thousands of content holders who trust RealNetworks' software and systems can continue to rely on the copyright protection ensured by the Digital Millennium Copyright Act," Alex Alben, vice president of government affairs at RealNetworks, said in a statement.
The case largely hinges on how the Digital Millennium Copyright Act (DMCA) is applied. RealNetworks claims the DMCA protects against hacks that negate its copy protection system. But Streambox CEO Bob Hildeman argues that DMCA also supports the right of content owners and listeners to access content and save it in a preferred format.
"This issue has gargantuan implications for content owners and consumers alike for many years to come," Hildeman said. "Does RealNetworks have the right to control digital distribution and eliminate competition with their [security] switch?
"Real needs to prove that Streambox VCR is strictly for illegal use ... there are millions of free streamed files, and Streambox allows users to access that free information," said Hildeman. "There are over 6,000 radio stations alone [currently streaming audio]."
Hildeman said that since 30 percent of RealAudio files are downloadable, his product can be used to legally manipulate content.
The court is expected to rule on RealNetworks' motion for a preliminary injunction on 17 January.
