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Survey: Kaleidescape Dealers ‘Not Really’ Worried About Legal Liability

Early results on Kaleidescape injunction in the DVD CCA case suggest dealers aren't concerned about their own legal liability; 41% say it's time to stop selling movie servers anyway because the future is streaming.

Most integrators (69%) are “not really” worried about their legal liability when it comes to movie servers, according to preliminary results of a brief survey issued this morning by CE Pro.

The survey is meant to gauge dealer reaction to the recent injunction order issued against Kaleidescape in its legal battle with the DVD CCA. The permanent injunction prohibits the sale and certain support of Kaleidescape movie servers that enable DVD copying, i.e., that employ the Content Scramble System (CSS) licensed by the DVD CCA.

The DVD CCA sued Kaleidescape in 2004 for breaching the CSS licensing agreement with the DVD CCA.

Blu-ray and CD archiving are unaffected.

SURVEY: Please participate in our 3-minute survey on Kaleidescape and movie servers (dealers only, please)

Minutes after posting the survey, CE Pro is receiving a flood of responses by integrators, including those who sell Kaleidescape and other movie servers, and those who largely ignore the category.

Related: Walmart, Vudu Ripping DVDs to the Cloud

The sample size at this moment is still too small to be statistically meaningful, but here’s how the responses are trending:

Among Kaleidescape dealers, 35% checked the box, “I will continue to sell Kaleidescape as long as the injunction is stayed, which Kaleidescape believes it will be.”

In fact, 53% of all respondents say they won’t discuss the case with existing clients until they see how it pans out. Kaleidescape has appealed the order and believes the injunction will be stayed until the appeal is decided, which could take up to two years.

Only 5% of dealers so far say they will communicate with all clients right away.

Among all integrators who have responded so far, 41% agree with the statement, “It's time to stop selling movie servers anyway; the future is streaming.”

So far, 39% of respondents say they currently sell Kaleidescape products; 18% say they used to sell the brand but they don’t anymore; 41% say they have never sold the brand.

In an open-ended question, one anonymous dealer responded, "This is a witch hunt and obviously someone has a very large stick up their ***. This is really no different than the music issue. Where would Apple be today if the music industry hammered apple the way the MPAA [Motion Picture Association of America] is attacking ONE manufacture that they thought would be a push-over."

Click here to participate in our 3-minute survey on Kaleidescape and movie servers (dealers only, please)

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Article Topics

News · Product News · Video · Digital Media · Media Servers · Legal · Kaleidescape · Dvd Cca · · 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. [More by Julie Jacobson]

5 Comments (displayed in order by date/time)

Posted by ohreally  on  03/14  at  08:35 AM

Any update to the results of your survey?  I was quite surprised that in your results above it seems like 65% of Kal dealers are not saying they will stand being the product.  I don’t know many companies that could survive a 65% downturn?

Posted by Julie Jacobson  on  03/14  at  12:13 PM

Not sure where you’re getting that. Only 5% say that they will stop selling Kscape as a result of the injunction.

Posted by ohreally  on  03/14  at  03:03 PM

If only 35% are positively affirming they will continue, then that leaves 65% who are not saying that?  If 5% have said they will stop, that leaves 60% who are undecided I guess?

Posted by Greg  on  03/14  at  03:15 PM

Among Kaleidescape dealers, 35% checked the box, “I will continue to sell Kaleidescape as long as the injunction is stayed, which Kaleidescape believes it will be.”

That would leaves 65% that would do what?  Not sell it.  I think thats the 65% loss of market ohreally was referring to.

The writing is on the wall for Kscape and it is not good.

Posted by ohreally  on  03/14  at  03:54 PM

Greg, you are correct, that was what I meant (you put it much clearer than I managed though!)

Certainly not a pretty picture, which is why I was interested to see if there had been much more response to the survey - it presently seems much worse for Kal than I would have expected, but I can’t see another interpretation of that data so far presented?

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