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Legal Pressure Forces 321 Studios To Close

by Glen Shapiro, LawAndTax-News.com, New York

06 August 2004

It emerged this week that software firm 321 Studios has been forced to shut down following several rulings against it regarding its DVD, games and CD copying software.

In a statement posted on its website following a ruling last week which imposed a global ban on its Games X Copy product, the firm announced that:

"Despite 321 Studios' best efforts to remain in business, injunctions entered against 321 Studios by three US federal courts earlier this year have resulted in 321 Studios no longer being able to continue operating the business."

Last Thursday's ruling was the final straw in a series of setbacks to befall the company, which argued that consumers should be able to back up their CD, DVD and games console purchases, and provided them with the technology to do so.

However, the most recent court ruling, delivered in a New York Federal Court, supported the assertion made by the firm's critics that because its products disabled copy-protection codes, they were in violation of the US Digital Millenium Copyright Act.

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