Kaleidescape, DVD-CCA come to terms
Just after Kaleidescape brought their DVD server to market, the DVD Copy Control Association (DVD CCA) sued and this lawsuit has been over their and their customer’s heads ever since. No more.
The Kaleidescape System copies, bit-for-bit, the entire DVD data to a hard drive for playback. Kaleidescape argued, first successfully in 2007, that this preserved the spirit of the DVD CCA licensing agreement. Being the only server manufacturer to actually possess a DVD CCA license for the Content Scramble System (CSS), Kaleidescape was saved the fate of other competing servers who were sued to oblivion who had not.
The DVD CCA argued, successfully on appeal in 2012, that the CSS encryption licensing required the physical disc to be present in the playback device. Kaleidescape was given a permanent injunction, but this ruling was stayed pending appeal.
On June 2, 2014, Kaleidescape and the DVD CCA finalized terms of a settlement which requires Kaleidescape to have the physical disc present in the player upon playback effective on servers sold after November 30, 2014. Kaleidescape Systems will then no longer store data on the hard drives and will have to be played from the tray or vault. The same tags will be used so DVDs will start immediately without warnings or trailers, and chapter and scene tags will still be available.
Why would Kaleidescape agree to such terms after building their entire business model on the idea of no more discs? Because times are changing, and DVDs aren’t as popular as they once were. Blu-ray Disc is here now, and Kaleidescape does have rights to store the data on hard drives as long as the disc is present in the vault or tray upon playback. More than that, the Kaleidescape Store allows for bit-for-bit downloads of DVD and Blu-ray movies for playback without a disc present – including UltraViolet license. The future is arriving faster than you know, because the Kaleidescape Cinema One is intended mainly as a download device.
This settlement is also opening doors to more studios to allow for far more content to be sold through the Kaleidescape Store. This future cut off date may even be a foreboding of new hardware at better price points to push a download service with better features than any other to a larger market.
For more information, read this interview with Cheena Srinivasan, CEO of Kaleidescape.