On Sept. 30, Real launched the product as a practical means of loading movies onto a notebook and playing them back at the user's convenience. That same day, six Hollywood studios and the Motion Picture Association of America (MPAA) filed suit to stop distribution of the product. Real has filed a countersuit.

According to Real, the original CSS encryption of the movie is left intact; there is no modifying or compressing of files, so an exact copy is saved. Cover art, genre, title rating and actor information are imported automatically during saving. Saved DVDs are encrypted and re-locked; they cannot be shared or stolen. However, content saved to portable drives can be played on up to five laptops licensed to the same user.

Real Networks founder Rob Glaser said in a post at RealNetworksblog.com, "It is clearly legal. Over a year ago in the Kaleidescape case the court ruled that a hardware product with very similar functionality was legal."

The MPPA disagrees and in a statement said, "We are gratified that the Court recognized the harm of RealDVD to the motion picture industry and the strength of our arguments that the product circumvents the copyright protection built into DVDs."