Kaleidescape: ‘Systems Remain 100% Licensed, Legal’

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

CE Pro Editors · August 14, 2009

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.

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