Twentieth Century Fox Film Corp. and Paramount Pictures Corp. have filed a lawsuit against online retailer Technology One. The plaintiffs allege that Technology One is continuing to sell the banned "D

LOS ANGELES -- Twentieth Century Fox Film Corp. and Paramount Pictures Corp. have filed a lawsuit against online retailer Technology One. The plaintiffs allege that Technology One is continuing to sell the banned "DVD X-Copy" software made by 321 Studios.

The suit was filed May 26 in Federal District Court in the Southern District of New York.

Fox and Paramount claim that Los Angeles-based Technology One -- which operates two online retail sites -- is engaging in illegal activity by selling software with a "DVD ripper" that 321 Studios is prohibited from selling and manufacturing.

Judge Susan Illston of the U.S. District Court of the Northern District of California ruled Feb. 20 that 321 must stop distributing products with the "ripper" function-which allows consumers to bypass DVD encryption codes. That case was brought by a number of studios, including MGM, Sony, Warner, Disney and Universal.

Judge Richard Owen of the Federal Court for the Southern District of New York on March 3 granted a preliminary injunction against 321 Studios in a separate case brought by Fox and Paramount. Owen ruled that "DVD X Copy" violates the Digital Millennium Copyright Act (DMCA).

Additionally, Macrovision announced May 20 that it had won a preliminary injunction against 321 Studios, barring the company from selling its software. In that case, Owen ruled that in addition to violating the DMCA, the "DVD X" line violates Macrovision's content-protection patents for DVDs.

Representatives of Fox and Paramount would not comment on the latest lawsuit. Technology One did not return calls.

Jim Spertus, VP/director of U.S. anti-piracy operations for the Motion Picture Assn. of America, which represents the studios, says: "With two federal injunctions prohibiting the further sale of 321's DVD circumvention products, (Technology One) has no excuse to flout the law."