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St. Charles-Based 321 Studios Considers Bankruptcy

By AP/KWMU

St. Louis, MO – A St. Charles company that makes products that allow people to make copies of DVDs and computer games says its on the verge of bankruptcy.

321 Studios has been in court with Hollywood and computer game makers over the software. It says it's crumbling under the weight of those lawsuits.

The suits argue the software violates federal copyright laws. But 321 says it's a question of fair use, adding there are legitimate reasons someone might want to copy or back-up various discs.

321's founder, Robert Moore, says he expects to decide within weeks whether the company will file bankruptcy to free itself of the lawsuits. He says his company's legal fees have soared into the hundreds of thousands of dollars.

Moore's company once had about 400 workers, it now has fewer than two dozen.

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