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Kaleidescape CEO ‘Shocked’ at Extreme Injunction Against Movie Servers

post #1 of 16
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Kaleidescape CEO 'Shocked' at Extreme Injunction Against Movie Servers
By Julie Jacobson
DVD CCA surprises Kaleidescape with severe injunction order, CEO Michael Malcolm tells CE Pro. He believes stay will be granted until appeal is exhausted.

Kaleidescape CEO Michael Malcolm and his team was pretty shocked by the injunction order just issued against the company in its seven-year-old lawsuit with the DVD Copy Control Association (DVD CCA).

Judge William J. Monahan of the Superior Court of California, Santa Clara, published the injunction last week.

The DVD CCA, which licenses the Content Scramble System (CSS) copy-protection scheme for DVD players, has enjoined Kaleidescape from selling its flagship DVD movie servers because they do not require a physical disc to be present at playback - a requirement of the CSS licensing agreement, according to the DVD CCA and the courts.

After the DVD CCA prevailed in a temporary judgment issued by Monahan in January, Kaleidescape expected an injunction order, but did not expect it to be so severe, said Malcolm in an interview with CE Pro.

All indications from the court trial (no jury) were that Kaleidescape would be required to come into compliance with the CSS licensing agreement -- if the court determined it was not in compliance to begin with -- not eliminate the product category altogether, according to Malcolm, who has maintained all along that Kaleidescape DVD servers do comply with the agreement.

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post #2 of 16
Way to go DVD CCA!!!! You've just saved the film industry BILLIONS! Especially considering the future growth in the DVD market!
post #3 of 16
I'm surprised the DVD CCA would even go after Kaleidescape. Shouldn't they be more concerned about acutal piracy?

It's garbage like this that turns the public against them, and the RIAA.
post #4 of 16
All those video licensing agencies and the music licensing companies (SESAC, BMI, ASCAP) only care about fees. I bet part of an eventual settlement will include a CCA licensing fee for each server unit sold. Green mail to the whores is like honey to the bees.....Besides, I though as a legal owner of content I could make a back-up copy for personal use....Kaleidescope should not be able to be held liable for crimes a CONSUMER MIGHTcomit by loading a DVD on thier server and then selling/distributing the actual DVD. As part of my Russound whole house A/V system, I would love to load all my content on a Kaleidescope system and be able to access it without going to my central equipment area to load the physical DVD. I think the DVD folks should worry more about on-demand downloaded content ruining thier business in 5-10 years rather than high end local component servers.
post #5 of 16
See, if K-Scape had done what W.almart just did they would be fine.

Walmart is now in the business of converting your titles to digital streaming at $2 pop for use with the Vudu service.

I figure it is a 50/25/25 split (Walmart/Studios/Vudu). K-Scape simply didn't play money ball. That is all they did wrong actually.
post #6 of 16
no, if Kaleidescape do streaming then nobody in the right mind will ever buy that system. So you buy a movie then pay extra to so you can stream it in craptastic quality?

Kaleidescape is for people who wants the ease of streaming in their dedicated HT but without compromise in A/V quality.
post #7 of 16
I stream multimedia for more than a decade now and there is no compromise in PQ or AQ.
post #8 of 16
how do you stream at full DVD/BD picture and audio quality without compromise in PQ and AQ?
post #9 of 16
Originally Posted by David Susilo View Post

how do you stream at full DVD/BD picture and audio quality without compromise in PQ and AQ?

I think he means locally.
post #10 of 16
oh. then his argument countering my Hulu argument is moot then.

How are you Amir? Long time no see!
post #11 of 16
Hi David. Good to see you all too . I have been well. Hope you are doing the same!
post #12 of 16
regarding the walmart approach- isn't WALMART actually creating such an easy avenue for pirating now?

1) Go to walmart with fifteen of your closest buddies
2) Have each buddy bring their entire collection
3) Give the first guy every movie from the entire group
4) First guy creates a Hulu account and pays the $2/movie to get streaming access from it
5) Give all the movies to the next guy (since walmart lets you keep your physical media)
6) Lather, rinse, repeat.

Sure, there is dollar exchange involved; but now everybody can go in and split a bluray for $1/ea and pay $2/ea to get it converted. That's $3/movie (including blurays). I see massive wins for the consumer, and massive losses for the industry.

How is this being seen as legit while someone ripping to their PC (or K-box) or making a second copy to keep in their family van for long trips not?


post #13 of 16
it's the illusion piracy that these companies are screaming about.

To put it simply:
people who pirate movies are people who don't / won't buy the movies to begin with anyway. So the companies are not really losing money. People who legally buy their movies keep buying movies anyway. Of course spending sales is down, but that's not because of piracy, but because of the exorbitant pricing on too many titles which then dropped to a very low price months later. Who's going to buy at full pop when you know the price will be dropped by 80% in the next couple of months? Mostly by that time you (or myself in this case) already forgotten about the movie and moved on with your life .

If they just priced movies accordingly (nothing about $20 for blu-ray 3D, $15 for regular blu-ray, $10 for DVD -- and keep the prices that way, no roller-coaster pricing), a whole lot more people will buy.
post #14 of 16
the only time I ever copied a movie i legally brought because the disc and the encryption system was in a state that the only way i could watch the disc without faults was to burn it myself..

I think any type of authority should be looking at the replication issue 1st of all before attacking someone's home network and media server or for that matter a company that builds these types of servers...

my opinion looking at the backlash that the mpaa has done to co's like oppo that has stopped iso support on dvd and bd, I say this until the production houses start 100% faultless disc releases which will never happen you shouldn't be issuing support bands when you full well know you release faulty products..

people should have the means to watch things with faultless playback, all I can see is a class action law suit that the co's can illafford to persue for a long period of time..

myself I hate pissing money the drain just to buy a dvd or blueray full of faults because the encryption systems go gaga and/or faults in the production of the media prior to replication process..

wait for the consumer back lash imagine the class action lawsuit the world vs mpaa and associates I doubt they would have balls and cash to fund a fight against the international consumer community...
post #15 of 16
^^^ 100% agree!!! ^^^
post #16 of 16
until sony redesigns the bugs out of their 400disc bdplayers and drops the price to under $500 USD and has international releases outside japan/US I can't see me buying 15-20 units to house both my 5000+ dvd and 100+bd collection in so my only option would be to mount a 30-50x 2-3 tb hard drive array to store both bd's and dvd onto.... without conversions to xvid/divx...

I'll be damned if I would let the dvd/bd cca tell me what to over my home home network if they tried to I'd tell them where to ****off too..
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