The company has been sued by seven major movie studios, which claim 321's DVD X Copy and DVD Copy Plus programs are helping to promote movie piracy. The studios claim the company is violating the Digital Millennium Copyright Act (DMCA) by selling software that can bypass protections on DVDs to make near-perfect copies.
However, in its latest filing, 321 argued that its products are protected free speech and that the studios are violating the First Amendment by trying to quash them. The company said the software is designed to allow people to make backups of DVDs they already own.
Source: ZDNet Tech