A US court has told 321 Studios to stop selling its DVD X Copy software, responsible for DVD copying.
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.