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DVD Copy Control Association and Kaleidescape Kiss and Make Up

Kaleidescape and the DVD Copy Control Association (DVD CCA) announced they have settled their ongoing legal dispute arising from Kaleidescape’s allegedly inappropriate use of the Content Scramble System (CSS).

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Unedited press release follows:

Kaleidescape and DVD CCA Announce Settlement Agreement to End Decade-Old Lawsuit

Ending license dispute clears the way for advancing electronic distribution

SUNNYVALE, Calif., June 2, 2014 — Kaleidescape, Inc., the market leader in movie servers, and the DVD Copy Control Association, Inc., the licensor of CSS (Content Scramble System), today announced an agreement to jointly end a decade-long lawsuit, paving the way for Kaleidescape to become the de-facto platform for high-resolution content delivery.

Kaleidescape and the DVD CCA jointly settled the case in the 6th District of the California State Court of Appeal and the Superior Court of Santa Clara County. Under the settlement terms, Kaleidescape agreed to drop its appeal of the superior court injunction, which has been stayed by the Court of Appeal since 2012. DVD CCA and Kaleidescape have agreed that Kaleidescape will be subject to the injunction starting on November 30, 2014. Systems sold by Kaleidescape after that date will no longer be able to import CSS-protected DVDs, and such DVDs will only be playable from the physical disc. It will still be possible to play a physical DVD starting at the beginning of the feature, or jump directly to a favorite scene or song.

Pursuant to the settlement agreement, the superior court at the request of Kaleidescape and DVD CCA modified the injunction to provide that it takes effect November 30, 2014. This permits Kaleidescape to continue selling systems that import CSS-protected DVDs through November 29. By then, Kaleidescape expects to have most DVD movies available for download from the Kaleidescape Store in the United States. For markets outside the United States, the Kaleidescape system will be sold after November 29 as a Blu-ray movie server only.

“This agreement is a watershed moment for Kaleidescape. Electronically delivered movies are the future of home video. This agreement allows us to focus on creating the future of digital content ownership,” said Cheena Srinivasan, founder and CEO of Kaleidescape. “As the most trusted brand among home theater enthusiasts, who purchase far more movies than the average consumer, we are committed to delivering the best products and services for the most entertaining and immersive movie-watching experience at home.”

About Kaleidescape
Founded in 2001 and headquartered in Sunnyvale, California, Kaleidescape pioneered the development of movie servers that redefined how film enthusiasts experienced their DVD and Blu-ray movie collections. Today Kaleidescape unlocks the magic of a personal movie collection for thousands of families, making it easy for them to enjoy their disc-based and downloaded movies in an immersive theatrical experience in the comfort of their own homes. The key to delivering this experience is the world’s most extensive database of movie metadata, the proprietary Kaleidescape Movie Guide. Kaleidescape also developed the world’s only online store for Blu-ray quality movie downloads, which is connected and integrated with every Kaleidescape System. Kaleidescape products are available through custom installation dealers throughout the world.

DVD Copy Control Association (DVD CCA) Issues Statement After Judge Approves Agreement Ending Litigation with Kaleidescape

MORGAN HILL, Calif. — Upon the June 2, 2014 action by Judge William Monahan of the Santa Clara County Superior Court, the DVD Copy Control Association issued the following statement:

“The DVD Copy Control Association (“DVDCCA”) is pleased Kaleidescape and DVD CCA have reached a settlement agreement that will result in the end of long-standing litigation over Kaleidescape’s use of the Content Scramble System (“CSS”). CSS is the patented technology that, together with the requirements of the CSS License Agreement (“License”), protects copyrighted content on DVDs from being copied.

“Under the settlement agreement, two significant actions have occurred in the California courts.

• “First, on May 19, 2014, at Kaleidescape’s request, the California Sixth District Court of Appeal dismissed Kaleidescape’s appeal of a California trial court’s 2012 judgment. The trial court had ruled that Kaleidescape’s DVD playback device known as the Kaleidescape System breached the License because it used CSS to make permanent copies of DVD content, which could then be played back without any need for the actual DVD.

• “Second, following return of the case to that trial court, Judge William Monahan on June 2, 2014 granted the joint request of DVD CCA and Kaleidescape to put into effect the injunction previously issued by that court to prohibit Kaleidescape from using CSS in breach of the CSS License Agreement. The injunction was made effective as of November 30, 2014, and modified to give the trial court jurisdiction to enforce the terms of the settlement agreement.

“The remaining terms of the settlement agreement between DVD CCA and Kaleidescape are confidential. The effect of the settlement agreement and the actions by the two California courts is to conclude the lawsuit DVDCCA brought against Kaleidescape to preserve the integrity of the CSS license agreement’s anti-copying mandate.”