RealNetworks and Movie Studios have cleared up a lawsuit over DVD copying. A permanent injunction has been passed by U. S. District Judge Marilyn Hall Patel, which restricts RealNetworks from selling RealDVD, which is the DVD-copying software. Hollywood has claimed in a lawsuit that it has violated copyright law.

RealNetworks will pay $4.5 million, and it said that the petition of court order barring sales of its DVD-copying software will be dropped for the settlement of lawsuit. Repayment will be done by RealNetworks to around 2,700 customers who bought RealDVD. RealDVD is a software program, which can save one backup copy of a movie to the hard drive of the computer.

"We are please to put this litigation behind us. Until this dispute, RealNetworks had always enjoyed a productive working relationship with Hollywood. With this litigation resolved, I hope we can find mutually beneficial ways to use Real technology to bring Hollywood's great work to consumers", said Bob Kimball, acting Chief Executive Officer of RealNetworks.

In Nasdaq trading, RealNetworks cut down by 9 cents, or 1.8%, to $4.84, yesterday; the shares have climbed 30% this year.