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Kaleidescape: ‘Systems Remain 100% Licensed, Legal’

Kaleidescape says next court proceedings "will likely take place in a year or two."

CORRECTION: This article has been revised to indicate that there are no copyright-related claims against Kaleidescape, that the recent decision simply involves a contractual dispute.

Despite a court ruling that might force Kaleidescape to stop making its movie servers that rip and store DVDs on hard drives, Kaleidescape says its systems "remain 100% licensed and legal."

A California appeals court recently reversed a ruling about Kaleidescape's contract with the DVD Copy Control Association (DVD CCA), the organization that licenses the content scramble system (CSS). The lower court had ruled that a certain document -- one that might ban DVD ripping -- was not part of Kaleidescape's licensing agreement with the DVD CCA. The new ruling reverses that decision.

Now Kaleidescape must return to court to determine if it is in fact in violation of the CSS licensing agreement.

"In the meantime our CSS license is in full effect," says Kaleidescape CEO Michael Malcolm.

Kaleidescape says the next court proceedings "will likely take place in a year or two." It adds, however, that the case might never take place if the California Supreme Court reviews the Court of Appeal's decision, which reversed a two-year-old ruling that found Kaleidescape did not violate its licensing agreement with the DVD CCA.

Kaleidescape's entire statement:

[The next court proceedings] will likely take place in a year or two, unless the California Supreme Court agrees to review the Court of Appeal's decision, in which case they may never take place at all. Kaleidescape will continue to fight, and we expect to prevail. However, it may take many years for this issue to be fully and finally resolved.

In the meantime, Kaleidescape Systems remain 100% licensed and legal. We will continue selling Kaleidescape Systems and providing excellent service to our customers and we will continue developing innovative products and technologies including the Movie Guide, the Music Guide, automatic software updates and automatic service alerts. The Blue-Laser Player is still on schedule for release in 2009.

In a separate case, a federal court ruled that RealNetworks' RealDVD software, which also rips DVDs and stores copies on a hard drive, also violates copyright laws and the CSS license agreement. A temporary injunction has been imposed, making the $30 software unavailable.

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 · Digital Rights · Digital Media · Media Servers · Legal · Legal · Media Server · Digital Rights · All topics

5 Comments (displayed in order by date/time)

Posted by nathan  on  08/14  at  10:48 AM

Wow, talk about having one’s head in the sand.  The DVD Copy Control Association should see by now that they can either:

1) make money off of the movie server industry, by licensing the right to build movie servers, or

2) lose that giant revenue stream, by refusing to license such devices.


Posted by WrightTechDave  on  08/14  at  11:19 AM

It appears that this will go on and on, I agree with Nathan that they have their head in the sand.  Why they are worried about copies for private use is beyond me and probably everyone else.  Consumers with server products like Kaleidescape are not the problem and hence should not be a concern to them.

Why can’t they accept storage on a server for playback only??

Why can’t it work just like the proposed Blu Ray managed copy, where only a certin amount of copies can be made for private use??

The DVD CCA is acting in an arogent manner like most organizations that put their thumb down, they are not thinking beyond protecting what they have.  Everyday online services like Netflix, Cinema Now, iTunes, HD Giants providing online movie delivery grow, and the content from these services can be disctributed in one form or another.  Part of this is fuled by the increasing number of devices from TVs to setop boxes that offer network capabilities, this coupled with services providers searching for more features will only pull customers away from DVDs.

Bottom line is that we paid for the content, we should be allowed to use the content in a manner of our chosing…

Posted by Joel DeGray  on  08/14  at  11:21 AM

They have and will fight to keep their monopoly.
Markets and economic expoansion which will serve to expand their revenues as well as those of others will be prevented due to their ignorance and greed.

Has anyone asked why all of a sudden the new SUVs have a 25% increase in fuel efficency over the last 2~3 months?

This is big business- they aren’t going to give an inch or be responsible to their audience until they have to, then they will do the least possible they can. Oh yeah- the gov’t of the past has written ridiculus legislation to protect them over your rights wink

Posted by WrightTechDave  on  08/14  at  11:52 AM

@Joel - I hear that…. smile

Posted by Gary  on  08/15  at  10:25 AM

It’s funny how everyone wants to complain about how unfair this is, and just continue to beat a dead horse.  The reality is that nobody cares about what you think is right, how you feel you should be able to handle your content, or what is fair or unfair.  All of your complaining will result in nothing, so if you have a strong opinion put your money where your mouth is and file a law suit against those that you feel our wronging you.  After all, hasn’t that become the American Way?

In regards to Kaleidescape.  They are going to be stuck in this legal battle for another couple of years and during that time downloadable media will take over and since Kaleidescape has pissed off those who would give them that ability they will become the best, most expensive piece of outdated technology available for sale.  That is of course if their contracts don’t expire before hand in which case they will likely not be renewed or that they don’t run out of money with all of the legal fee’s.

Now the sad thing is that I love the Kaleidescape products.  They are the most intuitive, trouble free, best products in our industry. The problem is they are so stuck on being right that they don’t seem to have planned for the future.  What does the next 5 years look like? DVD? No way! Blu Ray? You don’t support it and it’s still a disc. Downloadable Media? Absolutely, and how are you going to make nice with those in your law suit so you can have this capability?  How are you going to differentiate yourself from the media center tv’s, apple tv’s, and other boxes of the world that have more marketshare than you and sell for under $500?

You have a long road to travel.  Best of luck to you!

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