He also said his company has spent around $6 million on RealDVD already this year, and most of those expenses were related to the suit.
Like the much more expensive Kaleidescape systems, RealDVD stores DVDs with better encryption than the CSS used on the original disc. That means it would be much harder to copy the movies stored on a computer or Facet box than the original DVD.
This hasn't stopped the DVD-CCA from suing to stop its release, just as they have tried to stop Kaleidescape from selling their systems. In 2007 a Federal judge ruled that Kaleidescape's jukeboxes don't violate the CSS license agreement, leading the DVD-CCA to consider changes to the license.
So far those changes haven't come, in part due to Kaleidescape's threat of an anti-trust lawsuit.