So long RealDVD, it's been, uh... real
RealNetworks had been hoping that these restrictions would help the software survive against any legal claims. After all, the courts have a long history of deciding that you have a right to create backup copies of media you purchase for personal use. Unfortunately, the DCMA circumvents this right by declaring that you can't use technology that circumvents copy-protection.
The long and short of it is that the court ruled against the company because its software violates the DCMA. It's not clear whether RealNetworks will appeal the case. Honestly, I doubt there were throngs of people clamoring to buy copies of RealDVD at $30 a pop when there are plenty of free alternatives that don't restrict what you can do with ripped movies.
But RealNetworks had been hoping to launch a version of the software that could be included on set-top boxes like DVD players that would allow users to insert a disc and save the data to a hard drive so they could browse through their movie collections and watch videos without swapping discs. And that's a feature I could see people spending a few bucks for.