Martin O'Donnell pointed out that Judge Susan Illston of the U.S. District Court in San Francisco ruled that 321 Studios must stop making software that allows users to make archival copies of DVDs, a ruling aimed at halting the sale of a 321 Studios product called DVD X Copy. According to the Reuters article:

Illston barred 321 from selling its DVD copying software within one week. As part of its appeal, 321 said it would seek to stay the ruling so it can continue selling its DVDXCOPY program.

321 Studios claims that its software has legitimate use as a means for DVD buyers to backup the content from commercially-bought DVDs in order to safeguard them from theft or damage. They also say that they can modify their software to remove a component that Judge Illston ruled is an infringement of the Digital Millenium Copyright Act.