A federal court in New York has issued a paralyzing verdict against the Chinese-based DVD ripping company DVDFab. Ruling in favor of AACS, the licensing outfit founded by Warner Bros, Disney, Microsoft, Intel and others, the court has issued an updated injunction granting the seizure of several domain names belonging to the software vendor.

Last year the decryption licensing outfit AACS launched a crackdown on DRM-circumvention software.

The company sued the makers of popular DVD ripping software DVDFab. It won a preliminary injunction based on the argument that the “DVDFab Group” violates the DMCA’s anti-circumvention clause, since their software can bypass DVD encryption.

Initially DVDFab did not respond to the court, so the order was entered by default. However, after the injunction was issued the company responded in the name of Feng Tao, with a request for the court to revise its earlier judgment.

One of the counterarguments DVDFab raised was that the DMCA’s anti-circumvention provisions don’t apply worldwide, and DVDFab was promising to no longer do business with U.S. customers.

“It is well-established that the Copyright Act doesn’t apply extra-territorially,” the company argued, asking the court to quash the injunction or limit it to the United States.

AACS contested the good intentions of DVDFab and showed the court that the software was still readily available to the U.S. public. According to AACS the circumvention software was still being offered and promoted though new domains and services.

For example, new circumvention tools and services were offered from TDMore.com, BluFab.com, Boooya.org, DVDFab.de, and FabImg.net, among others. To stop DVDFab from bypassing the court order, AACS asked for an updated injunction to cover these new products and domains.

This week District Court Judge Vernon Broderick ruled on the motions from both sides with AACS the clear winner

The Judge argues that DVDFab’s explanations for the continued offering of software in the U.S. are not credible so has ordered the seizure of several new domain names.

“Tao’s explanations for his continued trafficking of infringing products into the United States—the product is not his, the product was not created ‘primarily’ for AACS circumvention, or the product was not intended for U.S. users — is simply not credible. The record overwhelmingly demonstrates these statements are not true,” Judge Broderick writes.

The injunction (pdf) bars DVDFab from distributing its software in public and allows AACS to seize seizure a wide range domain names. In addition, the company’s social media accounts are to be blocked and other services including online banks cut off as well.

While the Judge understands that the DMCA doesn’t apply in other countries he argues that, considering DVDFab’s conduct after the initial injunction, it will only be effective if it applies worldwide.

“It was not my intention to sweep within the Preliminary Injunction lawful conduct, i.e. entirely extraterritorial conduct. However, Defendant’s recalcitrant persistence in accessing the United States market makes clear to me that no more narrowly-tailored relief would be effective,” the Judge writes.

As a result DVDFab will lose control over TDMore.com, BluFab.cn, BluFab.com, Boooya.org, DVDFab.de, DVDFab.cn, FabImg.net, Woookao.cn, and Woookao.com which were found to be in violation of the DMCA. Two other domains, TDMore.cn and Boooya.com, were not added as there’s not enough evidence that they are operated by the software vendor.

There is no doubt that the broad injunction will severely impact the Chinese company. Aside from its domain names, the court also ordered payment processors to stop working with DVDFab, which will make it very hard for the company to sell its products anywhere in the world.