Injunctions Put Software Maker 321 Studios Out Of Biz

Software company 321 Studios -- developer of "Games X Copy" and "DVD X Copy" software, which allegedly allows users to bypass PC game and DVD encryption technology -- ceased operations on Aug. 3.

LOS ANGELES -- Software company 321 Studios -- developer of "Games X Copy" and "DVD X Copy" software, which allegedly allows users to bypass PC game and DVD encryption technology -- ceased operations on Aug. 3.

According to a statement on its Web site, the company could no longer operate as a result of "injunctions entered against 321 Studios by three U.S. federal courts earlier this year."

The St. Louis.-based company, which once reportedly had more than 300 employees -- was battling three separate lawsuits this year filed by various movie studios and videogame publishers.

Plaintiffs in the cases claimed that the "DVD X Copy" and "Games X Copy" software lines directly violated the Digital Millennium Copyright Act. In another suit, software developer Macrovision Corp. claimed that "DVD X Copy" infringed its DVD encryption-code patents. Injunctions issued by various courts enjoined 321 Studios from selling the software lines.

In June, 321 announced that it was considering seeking federal bankruptcy protection due to increasing legal fees and decreasing income. The company had yet to file for bankruptcy before announcing that it was closing its doors for good.

On its Web site, 321 states that online customer support will be available through Aug. 1, 2005. Creditors are asked to e-mail 321 at creditor@321studios.com before Aug. 30 of this year to resolve any outstanding invoices.

Additionally, the Web site directs consumers to www.jambalayabrands.com if they are interested in purchasing any close-out products.
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