The film industry is battling against piracy

Federal Judge Richard Owen in New York ordered 321 to stop distributing products that violate the Digital Millennium Copyright Act (DMCA).

The decision follows a similar ruling in California two weeks ago - 321 Studios said they would appeal.

US film industry body, the Motion Picture Association of America, said it was pleased with the judgement.

"We are pleased that yet another court has seen through 321 Studios' thinly veiled attempts to profit from others' copyrighted works," said MPAA chairman Jack Valenti.

"321 Studios' products and various publicity stunts only confuse consumers about what is legal and what is not," he added.

Battle

321's program, DVD X Copy, worked by getting around copy protection codes on DVDs.

The company said at the time of the California ruling that it gave owners of DVDs protection because it allowed them to make back-ups of discs in case originals were destroyed.

But the MPAA argued software that allowed the copying of DVDs only added to the huge film piracy problems it said it faced.

There has been a string of rulings over the past year against companies and individuals that have been ordered to stop the sale of similar software.

David Kendall, lawyer for 321 Studios said: "The law simply doesn't allow one to do indirectly what can't be done directly. We look forward to a permanent resolution to this case."