Streambox software products could record and redistribute video and audio in RealNetworks' formats and could change those formats into MP3, removing copy protections.
RealNetworks sued, arguing that Streambox violated both its own copyright and that of its customers. Streambox argued that its software acted as a VCR, recording RealNetworks' videos for personal use.
Streambox was also accused of using another of its programs to tamper with the appearance of the RealNetworks product, RealPlayer, which has 140 million registered users, by changing the logo and search engine.
Under the settlement, Streambox will develop future products that will operate in conjunction with RealNetworks' copy protection features. Specifically, Streambox agreed that it will modify its main product so that it no longer converts RealMedia streams into other formats, and that it will modify its VCR product so that it respects copy protection features. Streambox also agreed to pay RealNetworks an undisclosed sum of money.
“RealNetworks has a great track record of working with hundreds of developers around the world and we have now set the stage for a productive relationship with Streambox,” said Steve Banfield of RealNetworks.