A software company specialising in utilities for copying DVDs has gone out of business, unable to cope with the pressure of a series of court decisions that said its most popular product was illegal to distribute.

"Executives said that the company's popular DVD X Copy, which allowed people to make copies of DVDs, was simply a tool that allowed people to exercise their rights to make backups of legally purchased movies." - CNET News.com.

But it looks like the US courts didn't believe that. Injunctions entered against 321 Studios by no less than three US federal courts have driven the software maker out of business, it was revealed.