In another case of the law finally catching up with technology, RealNetworks lost a ruling to use its RealDVD copying software.

The Motion Picture Association of America and the DVD Copy Control Association were suing the Seattle-based software developer over claims that the software violated existing licensing arrangements.

The MPAA argued that the RealDVD software infringes on copyrighted material.

The argument is that it allows third-party development that in turn lets users store an unlimited number of movie titles on their computers, or share with others.

RealNetworks countered that it would only allow a total of four computers to have copies, and that it's designed to prevent any sharing.

They also claimed that this was within the framework of their existing arrangement.

The real issue they say, is that Hollywood studios feel the software will siphon revenue from their own downloading services and they are determined to not let that happen.

Typically, stuidos charge users if they want a copy of a downloaded version for their PC as well.

RealNetworks has not decided yet whether it will appeal the ruling.