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Court bars sale of 321 Studios game-copy program

http://biz.yahoo.com/rc/040802/media_321_games_1.html

Monday August 2, 4:15 pm ET

LOS ANGELES, Aug 2 (Reuters) - A federal judge has barred the manufacture and distribution of a program designed to make perfect copies of video-game discs, a games industry trade group said on Monday.

The Entertainment Software Association said Judge Richard Owen of the federal court in southern New York issued an injunction last Thursday, adding that developer 321 Studios agreed to the order before a hearing on a motion to block the distribution of its program "Games X Copy."

321 has ceased operations, according to its Web site, and an independent online vendor is running a close-out sale on 321 products not subject to an injunction.

Electronic Arts Inc. (NasdaqNM:ERTS - News), Atari Inc. (NasdaqNM:ATAR - News) and Vivendi Universal Games sued 321 in June, claiming, as the major movie studios have already done, that 321's software allows illegal copying of CDs and DVDs.

The company has suffered under the strain of suits by the various entertainment industries, and in June the St. Louis Post-Dispatch reported it had laid off more than 300 employees.
 
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