Yesterday was the last day that U.S. District Court Judge Marilyn Patel would be available for hearings until November 17, putting the case between Real Networks and the MPAA on hold.

In the meantime, Judge Patel said the temporary restraining order placed on RealDVD would remain. "I am extending the temporary restraining order because I'm not satisfied in the fact that this technology is not in violation. There are serious questions about copyright violations. There are questions about violations of the [Digital Millennium Copyright Act], and violations of these companies' agreement."

RealDVD is a newer piece of software by RealNetworks that allows DVDs to be copied and kept on mass storage devices, ostensibly to promote portability and eliminate the fragility factor inherent in optical discs. The DVD Copy Control Association and the Motion Picture Association of America argue that the software is an open door for users to copy rented media by circumventing on-disc copy protection.

Real's testimony yesterday highlighted the toll that this restraining order is expected to take on sales, saying that nearly half of the software's anticipated revenue would come in the pre-holiday season.

If history is any indicator, we need only to look back at what happened to 321 Studios in 2004 to see the potential impact of the product's unavailability. That company's DVD X Copy software experienced the exact same litigative process, and the company ultimately went bankrupt. In 2002, the company filed a pre-emptive suit against Hollywood studios, a countersuit was filed, a judge in the Northern District of California granted an injunction, sales were halted, 321 folded.

Real is in a considerably better position than the tiny 321 Studios, but with economic circumstances placing many on edge, the situation could be just as grave; if only financially.

[ME's Note: In accordance with BetaNews policy, in our original post of this story, we should have indicated that the source of the source of the quote from Judge Patel was a CNET story from reporter Greg Sandoval. BetaNews regrets the omission and apologizes.]