In September 2008, the motion picture industry sued RealNetworks over its RealDVD software, which was designed to allow consumers to copy their DVDs to their computers for later playback. Real also had intended to launch a line of consumer electronics devices that would have combined a DVD player with a hard drive. Real had obtained a license from DVD-CCA for its products, apparently relying on earlier court rulings in the DVD-CCA v. Kaleidescape case, where a California state court ruled that Kaleidescape's licensed digital DVD jukebox was within the scope of the DVD-CCA license.

On September 30, 2008, the day Real was to formally launch its RealDVD product, the motion picture studios filed a lawsuit in Los Angeles and asked for a temporary restraining order (TRO) to block the launch. The same day, RealNetworks filed a lawsuit in San Francisco asking the court to declare that distribution of RealDVD is lawful. The court in Los Angeles subsequently transfered the case to San Francisco, where the court granted a temporary restraining order halting distribution of the RealDVD software, which was followed by motions for a preliminary injunction to bar further distribution until the case was finally resolved.

On August 11, 2009, Judge Patel granted a preliminary injunction in favor of the movie studios and DVD-CCA. As a result, the RealDVD products remain off the market until the case concludes. The judge concluded that the RealDVD products were not authorized by the DVD-CCA license agreements, and that Real had violated the DMCA's ban on trafficking in circumvention devices when it distributed the RealDVD products.