321 Studios produces software that allows users to copy DVDs to blank CDs or DVDs by compromising the anti-copying technology measures embedded in the original DVD.
The MPAA, which represents all the major movie studios, has filed a lawsuit against the company for infringement of the controversial Digital Millennium Copyright Act (DMCA) and is asking a federal court in California to block 321 Studios from selling or distributing its software. Last year, 321 Studios filed its own lawsuit against movie studios, citing free speech rights in the First Amendment.
The company claims that its software embeds digital "stamps" in the back-up copies of DVDs, containing messages to warn users that further copying is illegal.
According to 321 Studios, the stamps also create digital "fingerprints" of the users' PC-DVD copies, which can then be used "to trace piracy back to the point of purchase." The company further claims that a special code in its product prevents further duplication in any event.
321 Studios has said in a statement that it is "firmly against piracy" and has been "diligent in trying to prevent the misuse of our products." The company also states that its new Piracy Prevention Programme will offer additional safeguards to prevent the illicit use of its products.
According to 321 Studios, the $10,000 reward will be offered for information leading to convictions.
The next hearing in the case against the company is scheduled for 25th April 2003.
