RealNetworks claims RealDVD was designed to maintain a DVD's copy protection with in mind rather than promote piracy. And as the company rightfully points out, those who really want to rip a DVD will have to turn to illegal free software that doesn't maintain any copy protection. (See related: )

Observers point out that Hollywood has a vested interest in nipping DVD copying technology at the bud for several reasons. One reason is to protect the sales of DVDs which was estimated at $13.45 billion last year, according to Adams Media Research. Another is to crimp technological innovation when it comes to movie distribution and sales. Hollywood's tight ownership of movie distribution chain is already being threatened by the likes of Apple's iTunes Store and Amazon that of movies.

Studios have innovated and addressed its customers' cries for disc-free convenience when it comes to movies. Recently leading Hollywood studios released premium DVDs that come with a that can be transferred from a DVD to a computer. The DVDs, called iTunes Digital Copy, has a catch. The digital copy of the movie can only playback on iTunes software. iTunes Digital Copy is not widely available.

Judge Patel will hear testimony from each side's witnesses Friday. The case is scheduled to last three days.

(PC World's Tom Spring contributed to this report)