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Kaleidescape, ‘Agents’ Enjoined from Selling, Supporting Movie Servers

In DVD CCA vs. Kaleidescape, judge issues injunction that prohibits the sale and support of existing DVD movie servers. Kaleidescape has appealed.



Transcript: Permanent Injunction Order, DVD CCA vs. Kaleidescape

SUPERIOR COURT OF THE STATE OF CALIFORNIA
IN AND FOR THE COUNTY OF SANTA CLARA
(UNLIMITED JURISDICTION)

DVD COPY CONTROL ASSOCIATION INC., a Delaware corporation, Plaintiff

v.

KALEIDESCAPE, INC., a Delaware corporation, Defendant

PERMANENT INJUNCTION ORDER

Case no. 1-04-CV-031829

Complaint filed: December 7, 2004
Trial date: November 14, 2011
Dept.: 16
Judge: Hon. William J. Monahan

The above-captioned Action between Plaintiff DVD Copy Control Association, Inc. and Defendant Kaleidescape, Inc. (“Kaleidescape”) (collectively “the Parties”) having been tried to the court, and having determined that Kaleidescape is in breach of the CSS License Agreement, the Court hereby enters the following Permanent Injunction pursuant to its Statement of Decision dated April 8, 2012, and Judgment entered April 8, 2012:

IT IS ORDERED THAT:
1. Capitalized terms in this Order shall be defined in accordance with the CSS Procedural Specifications (PRX 9) unless otherwise defined herein.
a. The term “DVD Playback Product” means any device or combination of components, or software that is capable of decrypting a Disc Key, decrypting a Title Key or descrambling a Title using CSS, including without limitation any such device or combination of components or software that also performs Authentication.
b. The term “Authentication” means any application of CSS that utilizes the CSS Authentication Algorithm and Authentication Key.
c. The term “persistent copy” (of a Disc Key or Title Key(s)) means a copy that remains when playback of the Title(s) associated with such Disc Key or Title Key(s) is not occurring.
d. The term “persistent copy” (of a Title) means a copy of a Title that remains when playback of the Title is not occurring.
e. The term “playable copy” means a copy of a Title from a DVD Disc made for purposes of allowing playback of the Title without obtaining the title from the DVD Disc.

2. Pursuant to California Code of Civil Procedure Section 526, and California Civil Code Section 3384, to prevent casual users from making unauthorized copies of copyrighted materials recorded on CSS-protected DVD Discs, Kaleidescape, its subsidiaries and affiliated companies, including but not limited to Kaleidescape Canada, Inc., and their agents, servants, directors, officers, principals, employees, representatives, assigns, franchisees, and those acting in concert with them or at their direction, are hereby permanently restrained and enjoined from directly or indirectly making, having made, selling, offering to sell, marketing, importing or otherwise transferring any DVD Playback Product unless such DVD Playback Product:
a. obtains the Disc Key and Title Key(s) from a DVD Disc each time one or more Titles is to be played back;
b. ensures that the DVD Disc is physically present in the DVD Playback Product when playback of one or more Titles from such DVD Disc is occurring;
c. does not make a persistent copy of any encrypted or unencrypted Disc Key or Title Key(s); and
d. does not make any persistent playable copy of any Title.

Any DVD Playback Product that does not satisfy subsections 2(a) – (d) is referred to herein as “Prohibited Technology.”

3. IT IS FURTHER ORDERED that Kaleidescape is enjoined from:
a. directly or indirectly transferring to third parties any intellectual property or know-how incorporating Prohibited Technology;
b. facilitating third parties in developing, designing, manufacturing, distributing, importing, selling, or offering to sell any Prohibited Technology;
c. using or implementing CSS to develop, design, manufacture, distribute, import, sell, or offer to sell products that make persistent playable copies of CSS-protected Titles; and
d. directly or indirectly providing any support services that include Prohibited Technology to third parties, including but not limited to the provision of the updates and upgrades to software and hardware.

4. This Court retains continuing jurisdiction over the Parties and the Actions for purposes of enforcing this Permanent Injunction.

IT IS SO ORDERED.

Dated: April 8, 2012

[signed] Hon. William J. Monahan
Judge of the Superior Court




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Article Topics

News · Product News · Video · Digital Media · Media Servers · Legal · Kaleidescape · Dvd Cca · Drm · All topics

About the Author

Julie Jacobson, Co-Founder, EH Publishing / Editor-at-large, CE Pro
Julie Jacobson, recipient of the 2014 CEA TechHome Leadership Award, is co-founder of EH Publishing, producer of CE Pro, Electronic House, Commercial Integrator, Security Sales and other leading technology publications. She currently spends most of her time writing for CE Pro in the areas of home automation, security, networked A/V and the business of home systems integration. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. She's a washed-up Ultimate Frisbee player currently residing in Carlsbad, Calif. Follow her on Twitter @juliejacobson.

16 Comments (displayed in order by date/time)

Posted by Kevin Luther - BlackWire Designs  on  03/12  at  09:20 AM

This makes me so angry. The DVDCCA and MPAA are so out of touch with reality but sadly they have enough money and lawyers to keep squashing new innovations. Its pretty pathetic

Posted by Jon  on  03/12  at  10:36 AM

So what is stopping Kscape from going international and bypassing the legal system?

Posted by 39 Cent Stamp  on  03/12  at  11:56 AM

Good job hollywood! You have outdone yourself once again! You are really good at turning customers away.

And dont think we havent been paying attention to your efforts on the digital download/streaming front…

http://theoatmeal.com/comics/game_of_thrones

Posted by mlafave  on  03/12  at  12:33 PM

39, your “oatmeal” post is missing one final frame. The one where the ISP sends a warning for ripping Torrents. I’ve started a collection of those. I’m sure they’ll make for some nostalgic reading when I’m serving time.

Posted by Greg  on  03/12  at  12:40 PM

According to Kaleidescape only minutes ago via phone, their product still supports playback of sources othen than the “Prohibited Technology” since they play music and therefore they can ship product and provide support for all existing systems.

Posted by John  on  03/12  at  01:12 PM

Nothing is ever really “Final” when it comes to the US Court system….

Posted by Mike  on  03/12  at  02:08 PM

Why does this surprize anybody?  The Hollywood elite have all the money but if you try to tax them (which they should in California)  then they throw a fit.  This stuff is all politically motivated for the far left liberials which are hollywood.  Any way to destroy a private industry makes them happy.

Posted by Bill Maxey  on  03/12  at  04:46 PM

I received this response today:
 
“It’s business as usual here at Kaleidescape. We are still shipping the same products and fulfilling orders. We filed our appeal on Friday and we believe the injunction order should not come into effect unless the appeals court affirms the judge’s decision. We’re looking at another year or two before we will get back in to court.
We’re going to keep fighting the fight!”
———————————————————————————-


http://www.MediaDesignInc.com


 
 

Posted by Andrew  on  03/12  at  04:53 PM

This is a sad day for the CE industry.  Love it or hate it Kaleidescape is a true innovator that is building products that people want to own.  Now the courts continue to stomp all over the entrepreneur.

Posted by Christ Almighty  on  03/12  at  11:51 PM

I’ve been waving off my clients off from buying K-scapes for years for this very reason. DVD license prohibits certain types of use. It’s explicit and anyone who doesn’t know this isn’t paying attention. If you don’t like the rules, don’t play the game. Now the real fun begins: end-users suing installers for selling heretofore obsolete servers. They will argue installers should have known K-scape was in litigation. Blood will flow.

Posted by Larry "Christ Follower"  on  03/13  at  05:54 AM

I am very glad tgat the lord and savior has finally commented.

Posted by Jeff  on  03/13  at  08:09 AM

I’m happy Kaleidescape is ignoring the court order to stop selling it’s system. Way to give that judge the middle finger!

Posted by ohreally  on  03/13  at  10:12 AM

So where does this leave dealers? Are we really “enjoined” by this injunction?  And if so, is Kal underwriting any eventual legal costs which may be incurred? 

I guess it is all very well for Kal to keep going with this (seems like they don’t really have an option, other than disabling all DVD library functions), but eventually someone is going to be looking at a bill for the other parties legal fees regardless…  All of a sudden the “100% legal” solution doesn’t seem quite so clear cut. 

How do I explain this to my customers without them running a mile?

I found the whole 60 page statement on the DVDCCA website; the court seemed to give Kal pretty short shrift, cutting down their counter arguments to the preliminary decision very strongly indeed.

http://www.dvdcca.org/documents/DVDCCA-v-Kaleidescape-Statement-of-Decision-20120308.pdf

Posted by hometheater  on  03/13  at  01:05 PM

So the only legal way to watch a DVD is to physically have the disc in a single disc player that needs to read the data off the disc itself?  A High Def version also needs HDMI and an active internet connection?   

next - they will come for your DVR.

Posted by HT stuck in a Box  on  03/13  at  03:15 PM

So where does that leave UltraViolet?

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