HOLLYWOOD STUDIOS READY FOR DVD WAR

Hollywood studios are going to court over a new technology from Seattle-based RealNetworks that allows consumers to copy DVDs to their computers.

A group that includes Disney, Paramount, Sony Pictures, Twentieth Century Fox, NBC Universal, Warner Bros. and Viacom filed suit yesterday against RealNetworks in California seeking a temporary restraining order to block distribution of its RealDVD software, which went on sale yesterday. (Twentieth Century Fox, like The Post, is owned by News Corp.)

The studios argue that the technology violates their copyrights and circumvents the Digital Millennium Copyright Act, which prohibits unauthorized copying and distribution of movies online.

They further allege that RealDVD will cause “immediate and irreparable harm” to both the studios’ DVD business and nascent downloadable movie offerings.

“Why pay $18.50 to purchase just one DVD if one can use a $29.99 product to build a library of perfect and permanent copies from DVDs rented or simply borrowed from friends for free?” the studios argue in the suit.

RealNetworks claims that its software does not violate copyright law because it does not remove the encryption on the DVD. Movies “ripped” using RealDVD remain locked on the hard drive to which they are transferred, and cannot be copied, burned to another disk, transferred to another device or distributed online

The company filed its own suit yesterday seeking clarification from the court that its software is legit.

“We are disappointed that the movie industry is following in the footsteps of the music industry and trying to shut down advances in technology rather than embracing changes that provide consumers with more value and flexibility for their purchases,” RealNetworks said in a statement.

Shares in RealNetworks close up 8 cents at $5.08.