DVD backup-software developer 321 Studios said it would appeal th...

injunction against 321’s DVD X Copy family of copying software in less than 2 weeks. Earlier, the U.S. Dist. Court, San Francisco, had banned the sale of 321’s products. Like the San Francisco court, Judge Owens agreed with the Hollywood studio plaintiffs that 321’s software violated the Digital Millenium Copyright Act’s provisions against circumventing the content owner’s copy protection. “321 Studios disagrees with both the California and the New York judgments, and will appeal, continuing to fight back against this fair use paradox that has effectively stripped away Americans’ rights in the digital future,” said Robert Moore, 321 founder-pres. “321 is in full compliance with Judge Richard Owen’s preliminary injunction. 321 Studios has already complied fully with an injunction against distributing a DVD circumvention device handed down in California on February 20, and is now distributing and selling ‘ripper-free.’ or ‘RF’ versions of DVD X Copy software through the company’s website and nationwide retail channels.” 321 said the Cal. judgment “clearly acknowledges that there are legal backup uses that can be made of DVDs under fair use” -- but Judge Owens didn’t buy part of the company’s argument. 321 contended the programs were not primarily designed to circumvent DVD’s Content Scrambling System (CSS) encryption, but had diverse, noninfringing uses such as repairing damaging discs by making a new, restored copy. But the court said those “arguably limited alternative uses” didn’t outweigh illegal uses of CSS circumvention. Besides enjoining the sale of 321’s products, the N.Y. court also barred the company from transferring its U.S.- based assets overseas. At our deadline, it wasn’t clear whether the purpose of that ruling was to secure funds for potential damages assessed against 321, or to prevent the company from operating outside the jurisdiction of the DMCA and selling its enjoined products from overseas into the U.S. Separately, the head of the U.S. Copyright Office put rights holders on notice that her office would continue creating exceptions, as necessary, to the DMCA’s circumvention ban. “If material is locked up and there is no way to get at it, there will be an exemption for the next 3 years,” as provided in the statute, Register of Copyrights Marybeth Peters told a State Bar of Cal. copyright event in San Francisco last week. The responsibility for re-examining exceptions every 3 years originally looked burdensome, but it has turned out to be “a fairly good way to take a look at what is going on in the market,” she said.