In September of 2000, the parties settled the lawsuit pursuant to an agreement in which
Streambox agreed to modify Streambox Ripper so that it no longer transformed RealMedia
streams into other formats, to modify Streambox VCR so that it respected RealNetworks’ copy
protection features, to license RealNetworks’ software development kit (which would allow
Streambox to create versions of its products that worked with RealNetworks’ copy protection
technology), to stop distributing Streambox Ferret, and to pay an undisclosed sum of money.^1042
(iii) Universal City Studios, Inc. v. ReimerdesIn this case, the plaintiffs were copyright holders who distributed motion pictures
encoded in a proprietary system for the encryption and decryption of data contained on digital
versatile disks (DVDs) known as the Content Scramble System (CSS). The CSS technology was
licensed to manufacturers of DVDs, who used it to encrypt the content of copyrighted motion
pictures distributed in the DVD format. The plaintiffs filed suit under the DMCA against various
defendants whom the plaintiffs alleged violated the anti-circumvention provisions of the DMCA
by posting on their websites the source code of a program named “DeCSS,” which was able to
defeat DVD encryption using the CSS technology and enable viewing of DVD movies on
unlicensed players and the making of digital copies of DVD movies.^1043 The plaintiffs sought a
preliminary and permanent injunction to prevent the defendants from posting DeCSS on their
Web site and from linking their site to others that posted DeCSS.^1044
On Jan. 20, 2000, the court entered a preliminary injunction against the defendants,
restraining them from posting on any website or otherwise making available DeCSS or any other
technology, product or service primary designed or produced for the purpose of, or having only
limited commercially significant purposes or use other than, circumventing CSS, or marketed by
defendants or others acting in concert with them for use in circumventing CSS.^1045 In an opinion
issued Feb. 2, 2000, the court set forth its findings of fact and conclusions of law supporting the
preliminary injunction.^1046
On Aug. 17, 2000, after a bench trial, the court issued a permanent injunction against the
defendants.^1047 The court ruled that DeCSS was clearly a means of circumventing CSS, a
technological access control measure, that it was undisputed that DeCSS was designed primarily
to circumvent CSS, and therefore that DeCSS constituted a prima facie violation of Section
(^1042) “Early DMCA Lawsuit Settled, Streambox Will Modify Products to Prevent Digital Copying,” BNA’s
Electronic Commerce & Law Report (Oct. 11, 2000) at 1019.
(^1043) Universal City Studios Inc. v. Reimerdes, 111 F. Supp. 2d 294 (S.D.N.Y. 2000).
(^1044) Id. at 303.
(^1045) Preliminary Injunction, Universal City Studios, Inc. v. Reimerdes, No. 00 Civ. 0277 (LAK) (S.D.N.Y. Jan. 20,
2000) ¶ 2.
(^1046) Universal City Studios, Inc. v. Reimerdes, 82 F. Supp. 2d 211 (S.D.N.Y. 2000).
(^1047) Universal City Studios Inc. v. Reimerdes, 111 F. Supp. 2d 294 (S.D.N.Y. 2000). An amended final judgment
was entered by the court on Aug. 23, 2001, enjoining the defendants from posting DeCSS on their web site and
from knowingly linking their web site to any other web site on which DeCSS was posted. Universal City
Studios Inc. v. Reimerdes, 111 F. Supp. 2d 346 (S.D.N.Y. 2000).