321 Studios close to shutting down

Found on CNet News on Wednesday, 16 June 2004
Browse Software

Faced with a new set of lawsuits, prominent DVD and game copying software company 321 Studios may be nearing the end of its short and tumultuous life, Chief Executive Robert Moore said Wednesday.

Moore's company was sued by a trio of large video game companies on Tuesday. The companies contend that 321 Studios' recently released Games X Copy software violated copyright law. Previously, a San Francisco judge had ruled that 321's popular DVD X Copy was illegal, because it was able to circumvent copyright protection programs. The judge ordered it removed from the market.

The St. Louis company has been a standard-bearer for the idea of fair use of entertainment--essentially the idea that consumers should be able to make personal backup copies of products they have purchased, such as CDs, DVDs or video games.

I bet some folks in the industry are dancing now. Another step closer to full user control and profit maximation (low media quality requires purchasing the same CD/DVD again). They may have won the battle, but the war isn't over yet.