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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'


Michael Malcom, Kaleidescape CEO
Julie Jacobson · March 4, 2010

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



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  About the Author

Julie Jacobson is founding editor of CE Pro, the leading media brand for the home-technology channel. She has covered the smart-home industry since 1994, long before there was much of an Internet, let alone an Internet of things. Currently she studies, speaks, writes and rabble-rouses in the areas of home automation, security, networked A/V, wellness-related technology, biophilic design, and the business of home technology. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, and earned an MBA from the University of Texas at Austin. She is a recipient of the annual CTA TechHome Leadership Award, and a CEDIA Fellows honoree. A washed-up Ultimate Frisbee player, Julie currently resides in San Antonio, Texas and sometimes St. Paul, Minn. Follow on Twitter: @juliejacobson Email Julie at julie.jacobson@emeraldexpo.com

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  Article Topics


News · DVD CCA · Kaleidescape · Michael Malcolm · RealDVD · All Topics
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