Re: They're suing the wrong company
But RealNetworks were in the same position as Apple, and couldn't get the authority to distribute DRM-free files. So they exercised their legally-protected right to interoperate with the Apple iPod, by persuading it to play their own DRM-encumbered files.
Now, obviously this required some hacking. However, this almost certainly did not exceed the bounds of "reasonable force" -- which is your right, when someone is blocking you from doing something which the law of the land says you are allowed to do and keeps ignoring polite requests. And bear in mind that in some states of the USA, you can actually legally pull a gun on someone who is calling you names, so RealNetworks must have plenty of wiggle-room. And proper old-fashioned tinkering with files is a lot less potentially harmful than, say, kidnapping and torturing an Apple engineer to get them to tell you how to get your media files to play on their player.
It also raises serious questions about the way that Apple's and RN's DRM schemes were sold, if the work-around was so easy to pull off. The Record Labels were evidently sold a pup. If it was known back in the days that copy-prevention was mathematically impossible rather than just very difficult (I've said this all along, but never actually bothered with a proper, formal, rigorous proof, as it's so self-evident.)
It might be intetesting, if the record labels (who might legitimately be expected not to be as intimately acquainted with matters of esoteric mathematics as a computer company hiring advanced mathematicians) successfully sued Apple, Microsoft, RealNetworks, Cactus et al for selling them DRM schemes they must have known would not work.