That RealNetworks' last September-launched product RealDVD is in troubled waters is obvious - it is being tested in court, as lawyers arguing for the Hollywood studios alleging that RealNetworks violated copyright law!

The sale of the $30-priced RealDVD, which could copy retail DVD content onto one hard drive and up to five devices, was blocked by a federal Judge, after only a few thousand sales, as Hollywood raised objections against it.

Arguing on behalf of the movie companies, Bart Williams said: "In the end, this case will be about how RealNetworks tries to take money that is not theirs." He also remarked that the code being used by RealNetworks was probably sourced from hackers in Ukraine. However, RealNetworks has denied the existence of any such code in its product.

In a counter-argument, lawyer Len Cunningham, arguing for RealNetworks, said that the Hollywood studios had their own products - called digital copy - which provide for backups, and have been "aggressively marketed" by them.

According to News. com reports, during the course of the RealDVD injunction hearing, Judge Marilyn Hall Patel asked the public to leave the courtroom, saying: "I find that this does meet the requirements for a trade secret. We're going to protect what needs to be protected. I'm ordering everyone not signed off on a confidentiality agreement to leave the courtroom!"

(This story was first posted on TopNews. With inputs from Jimmy Peterson)