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Kaleidescape CEO Responds to RealDVD Ruling

CEO Michael Malcolm tells CE Pro: 'We don't believe that this settlement has any implications for Kaleidescape's case with the DVD CCA'


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Michael Malcom, Kaleidescape CEO

Real Networks finally caved to the studios in the case against its RealDVD copying software. The company agreed to scrap plans for an appeal and pay the studios $4.5 million as reimbursement for legal fees.

So everyone in the CE pro community is wondering: What does that mean for Kaleidescape?

The pioneer of very-high-end movie servers was sued in 2004 by the DVD CCA (Copy Control Association) for breach of contract. The DVD CCA, which lords over the Content Scramble System (CSS) decryption software, says its contract with Kaleidescape prohibits DVD copying of any form -- even if CSS remains intact, as it does in the Kaleidescape system.

After a preliminary contractual dispute was settled, Kaleidescape is heading to court on the breach-of-contract case.

Unlike Kaleidescape, Real Networks was sued for a breach of contract with the DVD CCA and the violation of the Digital Millennium Copyright Act (DMCA). No DMCA claim has been filed against Kaleidescape.

In an email to CE Pro, Kaleidescape CEO Michael Malcom provided a quick response to the RealDVD ruling:

We have not analyzed the breach of contract claims that the DVD CCA brought against Real. The two cases involve different products, different facts and different sets of contract terms. So, we don't believe that this settlement has any implications for Kaleidescape's case with the DVD CCA.

However, today is a sad day for consumers because Real was valiantly fighting for the fair use rights of consumers -- rights that the major motion picture studios have been systematically destroying. Real attempted to balance the consumer's fair use right to copy DVDs that they own with a practical approach to protecting the rights of the content owners, something the studios should embrace given all the freely available software tools that copy DVDs while making no attempt to protect the rights of the studios.

Separately, attorney Fred von Lohmann of the Electronic Frontier Foundation, told CE Pro, "Both cases really turn on the question of how the DVD CCA contract is interpreted. The RealDVD case will certainly be relevant, but is not the last word on the matter."

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Michael Malcom, Kaleidescape CEO at home with his own system


DVD Ripping: The Whole Picture
 
Kaleidescape vs. DVD CCA: Judge Rules Against Movie Servers
Tentative ruling in landmark DVD-copying case says Kaleidescape knew its movie servers might be in violation of DVD CCA licensing agreement that prohibits copying of DVDs.
DVD Ripping: The Latest on the Legal Front
This compilation of articles on the legality of DVD ripping, and related fair-use cases, will be updated continuously.
Understanding the Kaleidescape, RealDVD Cases
What have the courts really decided on DVD copying, and what are the implications for the future? We debunk the myths about the the two lawsuits and clarify the current legal state of DVD ripping.
Is DVD 'Ripping' the Same as 'Archiving?'
Is the term "ripping" generally understood as the "illegal" form of copying a disk? Likewise, is "archiving" known as the bit-for-bit "legal" way of doing it?
Can You Be Sued for Helping Clients Rip DVDs?
EFF attorney Fred von Lohmann explains some of the legal issues involved in selling and installing products that enable users to copy DVDs.
Is Your DVD Server Legal? Manufacturers Say Yes!
Developers of movie-ripping products insist their products are legal. Here's how the manufacturers justify their solutions.
Copy Protection Group Sues Kaleidescape (2005)
Kaleidescape has a license from the DVD CCA to employ CSS decoding in its media servers, which it does. Now, DVD CCA is suing Kaleidescape for breach of contract.
Would Studios Rather We Buy DVD Ripping Products Offshore?
As studios work to quash legitimate products like RealDVD, offshore providers of DVD ripping software -- like AnyDVD developer SlySoft -- are reaping the rewards.
Industry Insider: DVD CCA Is an Innovation-Stifling Cartel (2005)
The DVD Copyright Control Association (DVD CCA) is a bunch of bullies. The organization manages to coerce all manufacturers of DVD players to sign away their rights to innovation.
 



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Article Topics

News · Product News · Video · Media Servers · Legal · Kaleidescape · Realdvd · Dvd Cca · Michael Malcolm · All topics

About the Author

Julie Jacobson, Editor-at-large, CE Pro
Julie Jacobson is co-founder of EH Publishing and currently spends most of her time writing for CE Pro, mostly in the areas of home automation, networked A/V and the business of home systems integration. She majored in Economics at the University of Michigan, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. Julie is a washed-up Ultimate Frisbee player with the scars to prove it. Follow her on Twitter @juliejacobson.

14 Comments (displayed in order by date/time)

Posted by karmann  on  03/04  at  10:10 AM

Julie

I assume K was sued in 2004, not 1994 as stated in your 3rd paragraph.

Posted by Julie Jacobson  on  03/04  at  10:13 AM

Yikes, Karmann. Thanks ... fixed.

Posted by Ownz  on  03/04  at  12:37 PM

Come on, this new ruling directly affects K since they are doing nothing different from any other media servers or real DVD.

Posted by MikeC  on  03/05  at  11:19 PM

This just leaves the door wide open for the offshore programs that careless about protection and repercussions. I am sure there demand has spiked because of the selfishness of the CCA.

Posted by Mark  on  03/06  at  09:30 AM

To Ownz,

KScape and RealNetworks were sued for differing reasons.

Real broke CSS and then re-applied another encryption scheme. KScape did not.

The case with Real is over DRM circumvention, the case with KScape is over copying of a DVD with encryption intact. KScape server is basically a DVD player with a HD attached. Their product simply uses their own legally acquired CSS license to play the copied but encryption intact media.

Real did not.

The DVD Copy Control Association is basically pissed off that they didn’t put in any verbage in the contract about making a bit perfect copy of DVD media. The left a large hole in the contract and KScape and others drove a big truck through it. The DVD CCA is going back to court to argue that the ‘No Copy’ was an ‘understood’ and ‘assumed’ measure.

The DVD CCA is practicing ‘shoot the lead buffalo’ and the rest of the herd will turn. That is why KScape is the only one in litigation. I hope for the sake of KScape and their competitors that KScapes competitors are contributing monetarily and other resources wise to prosecuting this silly lawsuit brought by DVDCCA.

Because if KScape loses so does KScapes competitors.

Posted by Ownz  on  03/06  at  12:26 PM

So now the comments are being censored on here? Kaleidescape is dead and the “owner” is just trying to defend his illegal product.

Posted by Mark  on  03/06  at  01:02 PM

Ownz,

Could you provide some historical context as to the illegality of KScapes’ product?

Answer me this:

Currently is KScapes product Illegal or Legal in the eyes of the law?

That is:

Did they win or lose the initial case (Y/N)

Even on appeal was an injunction granted on behalf of the DVD CCA while they move up to a higher court (Y/N)

Is KScape currently selling product along with competitors that do the same thing (Y/N)

I have a feeling that they are removing your posts due to diarrhea of the mouth. As Foghorn Leghorn said: “Boy, I say boy! I see your lips a’ flapping but no words are coming out!”

In other words could you please shut up since you don’t have anything to say?

Some times the best censorship is self-censorship.

Posted by Mark  on  03/07  at  09:11 AM

So Mark, since you seem to be the expert on this subject perhaps you could answer the following.

If KScape is so legal then why haven’t they evolved to Blu Ray management, and why haven’t they come out with a downloadable content solution which was their original plan and concept? 

DVD’s are so short lived that the debate over KScape is moot unless it pertains to current formats.  The reality is that regardless of their wins or losses in court the studios are not in support of their solution and therefore they have a product that will be completely irrelevant in the near future. 

A loss in court will only mean a bigger loss for those dealers who supported the product and those customers who now have expensive brick servers.

Posted by Mark  on  03/07  at  09:17 AM

Hi Ownz,

I will answer your question/s when you answer mine.

Posted by Mark  on  03/07  at  03:50 PM

Hmmm… the sound of silence. Just what I thought.

Posted by Mark  on  03/07  at  08:41 PM

The sound of silence is because your too busy being an idiot and accusing me of being someone else instead of answering questions.  I will leave this stage for you and ownz to see who has the biggest d!#k and cary on my discussion someplace else.

Posted by joel  on  03/08  at  01:28 PM

How many of you think the DVD is dead?
How long did it take for Records, CDs or VHS to die?
I think if you reflect on this you will see that there is a lot more life to DVDs than you are envisioning. To further this, the download services have tiny libraries, download issues and Oh, BTW- most customers who have the wallets like to own what they buy. IMHO

Posted by Ownz  on  03/08  at  04:28 PM

Kaleidescape is a home theater PC that run linux, that’s it, they have a good video processor but other then that it is a HTPC. The reason that kaleidescape went on as long as they did was because of the pull that the usual high end hypocrites have. They are rich and so the laws do not apply to them. There are many ways to rip a DVD and kaleidescape does not do it any better or different.

Posted by Curious  on  03/08  at  05:07 PM

Can you please name any other media server which operates as consistantly, offers as simple of a user interface and who’s video quality is as high as the Kaleidescape? And please, don’t offer an answer if you haven’t really thought it through as I am sure there are many here who will be able to judge impartially and with experience.

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