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321 Studios Considers Bankruptcy

Robert Moore said Wednesday that he’ll decide within weeks whether his 321 Studios Inc. would seek federal bankruptcy protection to free itself of copyright-related lawsuits by Hollywood and makers of computer games.

Moore long had cast his crusade as a David-and-Goliath struggle, insisting his suburban St. Louis company’s software was meant to let consumers innocently make backup copies of their DVDs and computer games.

Hollywood and three leading makers of video games argued otherwise, accusing 321 of violating the 1998 Digital Millennium Copyright Act. That law bars circumvention of anti-piracy measures used to protect DVDs and other technology.

Read the rest of the story at the Star Tribune.