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They've already crippled the technology, and hampered the tools.

Go ahead, make a copy of your DVD. Oh wait, you can't

Don't think that for a moment that the movie/music companies are being thoughtful by taking their stand against lawbreakers, it's because they've already written laws (through bribery) and got otherwise-legitimate companies shut down - and in the case of ISPS their hands were tied (common carrier, etc).

But not the one he helped write, the DMCA. =)

(Actually, there is a reference to fair use; 17 USC 12 sec 1201.c.1 says fair use is still legit, but 1201.a means effectively you can't buy a product to exercise those rights.)

More seriously, there is also extensive case law as well as statutory law on fair use. (Campbell v. Acuff-Rose Music, Inc., 510 U.S. 569, 114 S.Ct. 1164 (1994) was evidently the last time the issue went up to the Supreme Court, leaving aside Eldred v. Ashcroft's indirect effects via public domain limitations.) Admittedly, case law is far easier to change (one twitch from the legislative branch can do that), but that doesn't mean it's any less important while it exists... and it's usually less frivilously made, so some people tend to think when trying to change it.

One somewhat ironic aspect of this is that 321 Studios used mandatory activation to protect their software (at least with DVD XCopy Express). So if the company totally ceased operation without a successor taking over, there would be no way to install the software they've sold in the past on any new computer.
Apparently that is not the case (at least not yet). According to their FAQ, "You will be able to activate your 321 product online either through the computer where the software is installed or through another computer which is online, using a floppy disk. Telephone activation will not be available."

It is not illegal for you to own or use the software. The injunction only applies to 321 Studios.

How long until 321 will be required to hand over their customer list (at least the ones that registered)? If they can force this company out of business, it seems to me the next step is to go after the users. You know, the ones doing the acutal "law breaking".

These are the good guys. They are pissing off the evil copy-protection guys. They have a very reasonable argument.

I would like to see RMS write an article about this specific issue. It may help people to see how stupid these lawsuits are. I would like the Electronic Frontier Foundation to help out as well.

If I had a DVD-R drive, I would definitely buy their products.

DVDXCopy was presumably one of the biggest consumer application for these DVD recorders. People made backups of their existing DVD collection using that software, and why shouldn't they ?

But 321Studios was found guilty of violating the DMCA, and today we have the hardware to make copies legally available, getting cheaper & faster, while the software remains illegal.

From the people who brought you DVD Copy Plus

The complaint is available in PDF form. Also interesting is that Michael Page (who is representing Grokster in MGM v. Grokster) is representing 321 Studios.

My question is simple ... what happens to the company, if it doesn't get approved?

They are currently sell only one product ... the DVD Copier, and giving away DVD Photo Pro ... is that enough to sell and have the company not go away?

If it's ruled that the DVD Copier software is not legal ... could that fact actually influence it to be legal, since the DMCA would then effectively put (a) company(ies) out of business?

According to their own Press Release they are going on the offensive ...

Best wishes ... and good luck.