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Kaleidescape Loses DVD Ripping Appeal Against DVD CCA
Manufacturer of high-end movie servers may now have to stop making its products.

It's been a rough two days for advocates of DVD ripping devices.

One day after a preliminary injunction was imposed on RealNetworks' RealDVD software, a California appeals court overturned a previous ruling that may now force Kaleidescape to stop making its movie servers that copy and store protected DVDs onto hard-drive servers.

Both cases say the manufacturers are bound by the entire Content Scramble System (CSS) licensing regime, which prevents duplicating DVDs.

Kaleidescape was accused in 2004 by the DVD CCA, which licenses the CSS for DVDs, of breaching a contract by creating its movie servers. Kaleidescape argued that there's no language in the DVD CCA that prevents developing products that copy DVDs.

Judge Leslie C. Nichols agreed with Kaleidescape in March 2007, finding that there was no breach of contract. After the DVD CCA lost the first battle, it wanted to add the following amendment to the licensing agreement requiring a DVD be present during playback.

The DVD CCA appealed the March 2007 decision, however, and on Wednesday the two-year-old ruling was overturned.

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