The decision is a victory for Hollywood studio's who will still have to wait on an appeal in the case.
The legal action was initiated against RealNetworks by the Hollywood studios, who claimed that the technology allowed consumers to violate copyrights on movies and TV shows.
Judge Marilyn Hall Patel granted the studios a preliminary injunction that stops RealNetworks from selling the software, pending a full trial on the issue. However, her injunction could be in place for some time, as the trial isn't expected to begin for another year or two claims the Wall Street Journal.
Motion Picture Association of America Chairman and Chief Executive Dan Glickman called the decision a victory "for the rule of law in our digital economy." Studios were concerned that the software could erode their DVD revenue by making it easier to make copies.
A RealNetworks statement issued after the verdict said "We are disappointed that a preliminary injunction has been placed on the sale of RealDVD. We have just received the Judge's detailed ruling and are reviewing it. After we have done so fully, we'll determine our course of action and will have more to say at that time."