321 DVD copy)Company Reaches Settlement(driven out of business) on DVD

[papau]

http://story.news.yahoo.com/news?tmpl=story&cid=562&ncid=738&e=7&u=/ap/20040810/ap_on_hi_te/copying_dvds

321 DVD copy)Company Reaches Settlement(driven out of business) on DVD Issue

By JIM SALTER, AP Business Writer

ST. LOUIS - A company driven out of business by Hollywood and the video game industry over its DVD- and computer game-copying software has reached a settlement with the motion picture industry.

In the settlement, suburban St. Louis-based 321 Studios Inc. and its owners agreed to stop selling DVD copying software worldwide, said Matthew Grossman, a spokesman for the Motion Picture Association of America. The company's owners also agreed to a financial settlement, he said. Terms were not disclosed.

Robert Moore, owner of 321 Studios, said the MPAA's announcement was premature because the agreement hasn't been signed. He declined to comment. The company ceased operation last month.

"321 Studios built its business on the flawed premise that it could profit from violating the motion picture studios' copyrights; the courts have been amply clear — there is no leniency for violating federal copyright laws," said Jack Valenti, the MPAA's president and chief executive. <snip>

As recently as earlier this year, 321 had nearly 400 employees and expectations of sales approaching $200 million for the year, Moore had said in June.

http://www.321studios.com