Streambox software products could record and redistribute video
and audio in RealNetworks' formats and could change those formats
into MP3, removing copy protections.
RealNetworks sued, arguing that Streambox violated both its own
copyright and that of its customers. Streambox argued that its
software acted as a VCR, recording RealNetworks' videos for
personal use.
Streambox was also accused of using another of its programs to
tamper with the appearance of the RealNetworks product, RealPlayer,
which has 140 million registered users, by changing the logo and
search engine.
Under the settlement, Streambox will develop future products
that will operate in conjunction with RealNetworks' copy protection
features. Specifically, Streambox agreed that it will modify its
main product so that it no longer converts RealMedia streams into
other formats, and that it will modify its VCR product so that it
respects copy protection features. Streambox also agreed to pay
RealNetworks an undisclosed sum of money.
“RealNetworks has a great track record of working with hundreds
of developers around the world and we have now set the stage for a
productive relationship with Streambox,” said Steve Banfield of
RealNetworks.