RealNetworks, Inc. (NASDAQ:RNWK) should have saw this coming when they release their new controversial RealDVD software.  While RealPlayer already allows you to download any video from YouTube or powered by Flash, RealDVD allows you to rip DVDs and make back up copies.  RealDVD was officially launched today.  Six major studios announced that they are suing the software company over the software.

These studios believe that many of Netflix and Blockbuster’s customers would just burn the movies that they rent with the RealDVD software, thus causing them to lose out on a great deal of money.  The lawsuit was filed at the U.S. District Court in L.A. 

“The incentive for the consumer is obvious and all but overwhelming,” stated a request by the movie studios.  The request was for a temporary restraining order. “‘Why,’ he or she may ask, ’should I pay $18.50 to purchase a DVD when I can rent it for $3.25 and make a permanent copy?’”

RealNetworks defends their software by saying it is legal.  RealDVD is sold for $30 per consumer at $20 for up to four licenses after that.  The software copy is locked into the original owner’s hard drive and does not alter the encryption technology used by movie studios already.  Copying one’s own personal copies of a DVD is “fair use” by law. 

The movie studios stated that RealDVD violates the Digital Millenium Copyright Act to bypass technologies that prevent the copying of a DVD without permission of the copyright owners.  The movie studios that are suing RealNetworks includes Viacom, Inc. (NYSE:VIA)’s Paramount Pictures, Sony Corporation (NYSE:SNE)’s Sony Pictures, News Corporation (NYSE:NWS.A)’s 20th Century Fox, General Electric (NYSE:GE)’s Universal, The Walt Disney Company (NYSE:DIS) studio, and Time Warner Inc. (NYSE:TWX) Warner Bros.

TheWB.com is currently in Beta and is geared to launch on August 27.  Upon launch, TheWB.com will have full episodes of All Of Us, Roswell, Everwood, Blue Water High, Buffy the Vampire Slayer, Dangerous, Friends, Gilmore Girls, One Tree Hill, Smallville, The Wayans Bros., The OC and Veronica Mars.  TV producers, McG and Josh Schwartz will be releasing a couple of new shows on TheWB.com such as Sorority Fever. 

McG is the director and producer of Terminator 4, Supernatural, and the Charlie’s Angels movies.  Schwartz is the writer and producer of Gossip Girl, Chuck, and The O.C.

“The launch of TheWB.com represents a natural progression of the Warner Bros. Television Group’s digital strategy and complements our core business, which is based upon episodic storytelling, first-class distribution and providing value to partners through advertising in a premium environment,” stated Bruce Rosenblum, President of Warner Bros. Television Group (WBTVG).

TheWB set-up a Facebook application and a Facebook fan page as part of the launch.

“These hit shows still have an incredible amount of equity with their audiences, who grew up with these characters and went through significant events in their lives just as some of the characters did on the programs,” stated Brent Poer, General Manager of TheWB.com. “And now, through TheWB.com, users will be able to take an unprecedented level of control over their own entertainment experience by easily editing, remixing, and literally ‘playing’ with their favorite shows. We’re giving the users final cut.”

Johnson & Johnson (NYSE:JNJ) signed on as the charter sponsor for TheWB.com.  TheWB.com is a subsidiary of Time Warner Inc. (NYSE:TWX).

Related Links:
1. TheWB Beta
2. WB Press Release

Warner Music’s subsidiary company, The Alternative Distribution Alliance (ADA) announced yesterday that they have acquired Insound.com, a indie music web site [Source: Billboard]. Insound.com is based in New York City and started in 1998. Insound.com will be used as the back-end for Warner Music’s labels.

Insound.com started out in 1998 by selling customized CDs online and sent them out by mail. In October 2006, Insound started selling MP3s. ADA started in 1993 as a joint venture between WMG and Sub Pop Records. This is the first time ADA or Warner Music acquired a retail operation. Insound will continue to be run by Matt Wishnow, a co-founder.

Currently ADA is the leading indie distribution company in USA. Some labels within the ADA includes Comedy Central, Doghouse Records, Elektra Records, Rhino Records, and Warner Bros. Records.

[Information Source: paidContent]