Most DVDs and video games contain anti-copying software, known as CSS, or Content Scrambling System, which uses encryption to prevent them from being copied - except by players containing the correct keys.
St Louis-based 321 Studios developed software, incorporated in products called DVD Copy Plus, DVD-X COPY and Games X Copy, which "ripped" the CSS, allowing the copying of the game or DVD.
It became the subject of numerous lawsuits, mostly based on the US Digital Millennium Copyright Act, or DMCA, which prohibits people from using or distributing devices that can bypass copyrights and copy prevention measures.
321 defended these claims vigorously, arguing that the software merely allowed people to make fair use of their DVDs, making backup copies in case the original was destroyed or damaged - but the courts were not convinced.
By June this year the company was the subject of three injunctions in connection with its DVD copying software, and was forbidden from selling or distributing its DVD Copy Plus and DVD-X COPY software.
On Thursday last week, Atari, Electronic Arts and Vivendi succeeded in obtaining another worldwide injunction against 321 – relating this time to the company's Games X Copy software. It appears to have been the final nail in the coffin for the controversial firm, which indicated in June that the lawsuit might force its closure.
According to the 321 web site:
"321 Studios regrets to inform you that it has ceased business operations including, but not limited to, the sale, support and promotion of our products. Despite 321 Studios' best efforts to remain in business, injunctions entered against 321 Studios by three US federal courts earlier this year has resulted in 321 Studios no longer being able to continue operating the business".