VIDEO: iTunes, mp3 rippers paved the way for RealDVD

There's another legal showdown brewing between Hollywood and the techies. RealNetworks and the motion picture studios are headed off to court over RealDVD, just-released software that allows users to rip their personal DVD collections into a PC or portable hard drive. Yeah, just like everyone's been doing with music CDs for years.

So what's the problem? Software that reads music CDs and converts the tracks to mp3 or other audio formats is as old as, well, mp3 players. How is it any different when the disc is holding a movie, instead of a dozen music tracks?

Fellow ZDNet blogger Richard Koman analyzed the complaint filed by the studios and noted the only real argument: Real allegedly misused a limited license that allows it to make DVD player products - not copier products. Real, in its preemptive legal strike, filed court papers before Hollywood, asking the courts to find RealDVD to be in compliance with the license.

Also see: Studio, Real trade lawsuits over RealDVD

In the complaint (pdf), studio lawyers also noted "the ability to use RealDVD to 'rent (or borrow), rip and return' motion picture content" from friends, family, Netflix or Blockbuster. But, that argument is weak - again, because of the comparison to music. Today, I can borrow a music CD from a friend for a "rip and return." I can even go to the public library, check out some music CDs and do a "rip and return." And while I'm sure some people do that, there are also many of us who don't.

But wait. Late last year, a legal battle over music piracy went a step further when a lawyer representing the Recording Industry Association of America said that ripping music from a CD - even for personal use - is an unauthorized copy and illegal. (Gulp!)

I don't buy it. It's too late to turn back the clock. The precedent has been set with music and, aside from a technicality on the misuse-of-license allegation, the case seems weak. The courts should not stifle innovation for the sake of preserving an outdated business model from the studios.

So what should Hollywood do instead? Check out my video memo below.