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Post 1 made on Friday January 27, 2012 at 12:12
The News Monster
March 1999
Kaleidescape vs. DVD CCA: Judge Rules Against Movie Servers
By Julie Jacobson
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.

Kaleidescape, a prominent manufacturer of high-end movies servers, has lost its eight-year battle against the DVD Copy Control Association, the organization that licenses decryption software for DVD players.

The DVD CCA sued Kaleidescape in 2004, arguing that its products violate a licensing agreement that expressly prohibits the copying (ripping, archiving) of DVDs.

Judge William J. Monahan of the Santa Clara County Superior Court in California issued the tentative judgment favoring the DVD CCA on Jan. 9, 2012. The ruling is subject to revision pending input from the two parties. If it stands as written, the DVD CCA can permanently prohibit Kaleidescape from selling DVD movie servers. The DVD CCA also may collect monetary damages (amount to be determined) from the defendant.

This landmark case could set a precedent that would make all DVD movie servers illegal – that is, all servers whose makers have a license with the DVD CCA.

“We are very disappointed by the tentative decision,” Kaleidescape CEO Michael Malcolm tells CE Pro. "The DVD CCA is controlled by the six large movie studios in concert with some of Kaleidescape’s competitors. They object to the innovations of the Kaleidescape System, and want new Kaleidescape Systems to require the presence of the DVD in a disc vault, as with Blu-ray Discs today. Despite the evidence presented at trial, Judge Monahan has tentatively adopted a statement of decision that was drafted by the DVD CCA, which goes far beyond anything in the license."

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