On January 8, 2010, the United States District Court for the Northern District of California dismissed, with prejudice, antitrust claims made by RealNetworks against seven major movie studios, including Cravath’s client, Warner Brothers Studios. RealNetworks alleged that the major movie studios collectively refused to deal with their company with respect to technology developed by RealNetworks that would enable consumers to create unlicensed digital copies of DVDs. RealNetworks also claimed that the movie studios and the DVD Copy Control Association have interpreted (or are enforcing) license agreements relating to DVD copy protection in a manner that violates the antitrust laws. In granting the movie studios’ motions to dismiss, the Court ruled that RealNetworks lacked antitrust standing because it had not demonstrated that it suffered a viable antitrust injury resulting from the alleged conduct of the defendants and that RealNetworks failed to adequately plead a plausible antitrust conspiracy or illegal restraint of trade under the Sherman Act.
The Cravath lawyers involved in this matter included partner Katherine B. Forrest and associate Jessica L. Selb.