RealNetworks Inc. said it will pay $4.5 million and drop its appeal of a court order barring sales of its DVD-copying software to settle a lawsuit by Walt Disney Co. and other Hollywood movie studios claiming the technology violates copyright-protection laws.

RealNetworks, based in Seattle, also will refund about 2,700 customers who bought RealDVD, a $30 software program that allows users to save one backup copy of a movie to a computer hard drive, according to an e-mailed statement.

U.S. District Judge Marilyn Patel in San Francisco ruled in August that RealDVD circumvents copyright-protection laws and granted movie studios’ request for an order permanently banning the product’s sale. Patel approved the settlement yesterday, according to a court filing.

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