DVD CCA Launches New Assault on DVD Ripping; Kaleidescape Fights Back
Just when we thought movie-server manufacturer Kaleidescape was in the clear, the DVD CCA is trying to ban DVD ripping once and for all. The organization, which licenses the Content Scramble System (CSS) to manufacturers of DVD players, is trying to amend its licensing agreement to expressly prohibit the copying of a DVD onto a hard drive.
Earlier this year, Kaleidescape won a lawsuit filed by the DVD CCA, claiming that nothing in the current agreement spells out such requirements. Now Kaleidescape is crying antitrust.
In a letter to the DVD CCA, Kaleidescape CEO Michael Malcolm wrote:
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Just when we thought movie-server manufacturer Kaleidescape was in the clear, the DVD CCA is trying to ban DVD ripping once and for all. The organization, which licenses the Content Scramble System (CSS) to manufacturers of DVD players, is trying to amend its licensing agreement to expressly prohibit the copying of a DVD onto a hard drive.
Earlier this year, Kaleidescape won a lawsuit filed by the DVD CCA, claiming that nothing in the current agreement spells out such requirements. Now Kaleidescape is crying antitrust.
In a letter to the DVD CCA, Kaleidescape CEO Michael Malcolm wrote:
Quote:
There is no valid business justification for the proposed amendment. After hearing all the evidence at trial, the Superior Court of California expressly found in its decision that the DVD CCA and its members have suffered no harm from the Kaleidescape System. To the contrary, the first thing many Kaleidescape owners do is to purchase hundreds of additional DVDs.
The real purpose of this proposed amendment is to put Kaleidescape out of business by excluding the Kaleidescape System from the DVD playback devices authorized by the CSS License Agreement. You should be aware before you vote on the proposed amendment that you expose yourself, your employer, and the DVD CCA to serious and substantial antitrust liability if you vote for this amendment. Both federal and state antitrust laws outlaw anticompetitive conduct by businesses joining together to put a competitor out of business.
There is no valid business justification for the proposed amendment. After hearing all the evidence at trial, the Superior Court of California expressly found in its decision that the DVD CCA and its members have suffered no harm from the Kaleidescape System. To the contrary, the first thing many Kaleidescape owners do is to purchase hundreds of additional DVDs.
The real purpose of this proposed amendment is to put Kaleidescape out of business by excluding the Kaleidescape System from the DVD playback devices authorized by the CSS License Agreement. You should be aware before you vote on the proposed amendment that you expose yourself, your employer, and the DVD CCA to serious and substantial antitrust liability if you vote for this amendment. Both federal and state antitrust laws outlaw anticompetitive conduct by businesses joining together to put a competitor out of business.
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