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.

Julie Jacobson · March 12, 2012

UPDATE: All parties including dealers are enjoined from selling Kaleidescape DVD servers; only Kaleidescape is enjoined from supporting the servers, and only support related to CSS, according to Kaleidescape. Read updated article: Kaleidescape CEO ‘Shocked’ at Extreme Injunction Against DVD Movie Servers

The DVD Copy Control Association (DVD CCA) has prevailed in a final decision against Kaleidescape, a manufacturer of high-end movie servers.

Judge Willliam J. Monahan has affirmed the temporary decision he issued earlier this year in the Superior Court of California, Santa Clara County. To that, he added a permanent injunction against the sale and support of Kaleidescape’s current DVD servers.

The far-reaching injunction touches not just Kaleidescape, but its agents, franchisees and “those acting in concert with them or at their direction,” all of which are “permanently restrained and enjoined from directly or indirectly making, having made, selling, offering to sell, marketing, importing or otherwise transferring any DVD Playback Product”  that does not have a physical disk present during playback, the court ordered.

As part of the injunction, Kaleidescape can no longer offer technical support for products that are already in the field, meaning existing servers can receive no updates or repairs (for clarification, read article update).

Related: Walmart, Vudu Ripping DVDs to the Cloud

Kaleidescape has filed an appeal and the company “believes that under California law the injunction order should not come into effect unless the California Court of Appeal affirms Judge Monahan’s decision,” according to a statement issued today.

The company is confident that the injunction will be overturned in an appeals process that could take up to two years.

UPDATE: Exclusive interview with Kaleidescape CEO Michael Malcolm
Kaleidescape CEO ‘Shocked’ at Extreme Injunction Against DVD Movie Servers
DVD CCA surprises Kaleidescape with severe injunction order, CEO Michael Malcolm tells CE Pro. He believes stay will be granted until appeal is exhausted

The DVD CCA licenses the Content Scramble System (CSS) copy-protection scheme required of all (legitimate) DVD players. The organization sued Kaleidescape in 2004, arguing that its servers violate a licensing agreement that expressly prohibits the copying (ripping, archiving) of DVDs.

Kaleidescape has maintained all along that its servers abide by the licensing agreement and, furthermore, that the DVD CCA is so secretive and its contracts so confusing that a licensee cannot precisely interpret them.

In the Kaleidescape statement issued today, CEO Michael Malcolm explains:

For the past 8 years, we’ve been baffled about why this lawsuit ever happened, since our products don’t encourage piracy, but do increase sales of movies. Maybe it’s because the large CE companies in Japan and the big computer companies in the USA, on the board of the DVD CCA, are afraid that Kaleidescape is building a better way to enjoy DVDs and Blu-ray Discs than they are. Imagine a world where Apple wasn’t allowed to build the iPod because Sony wanted a ‘level playing field’ for the Walkman.

Stay tuned for an exclusive interview with Malcolm later today, along with a discussion on the implications for Kaleidescape dealers and their clients. (Kaleidescape CEO ‘Shocked’ at Extreme Injunction Against DVD Movie Servers

Next page: order of permanent injunction

  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

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  Article Topics

News · DRM · DVD CCA · Kaleidescape · All Topics
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