In the Kaleidescape case, the court found that the agreement did not prohibit copying, von Lohmann said. That case is being appealed, however.

Ultimately, the RealNetwork case is yet another chapter of the ongoing struggle between entertainment companies and Silicon Valley to see who will ultimately control digital media. If the motion picture industry wins the trial, it "sends a strong message to the technology industry, von Lohmann said: "You can't touch DVDs unless you negotiate with Hollywood first."

Glaser's testimony is set to continue Wednesday. The case is being heard in the U.S. Federal Court for the Northern District of California, in San Francisco.