Mark Fleischmann

A California superior court ruling saved Kaleidescape from extinction yesterday. The decision is good news for what is arguably the best-designed home networking system for movies and music. But it is bad news for similar products, and those who might want to market or buy them, because it spares Kaleidescape only on a technicality, and does not necessarily set a precedent that would protect similar devices. The plaintiff was the DVD Copy Control Association, which argued that Kaleidescape illegally de-encrypted its Content Scramble System in copying DVDs (including potentially rented or borrowed ones) to the system's hard drive. Kaleidescape argued that the material remained secure on the hard drive and was distributed throughout the home via protected interfaces such as HDMI. Judge Leslie C. Nichols ruled against CCA, saying that the CSS spec was not legally part of the licensing agreement, which he characterized as "a product of a committee of lawyers." You can't make this stuff up. He also faulted CCA for failing to provide guidance when Kaleidescape solicited it: "I saw this as a case where no one sat down to talk." Kaleidescape feels "vindicated"; CCA may appeal. CCA's lawsuit against Molino Networks, whose $2000 system cost far less than Kaleidescape's, killed that company in 2004 by starving it of venture capital. The Motion Picture Association of America has "warned" about 80 chip makers about CSS and obtained three out-of-court settlements. Your right to store DVD content on a home network remains ambiguous at best. See EETimes and ArsTechnica coverage.

Soon after announcing their hoped-for merger, Sirius and XM told an investor conference call they planned to raise rates. They're beaming a different tune now. If the merger goes through, they promise to allow subscribers to block adult channels, pay a la carte, and save an unspecified amount off the current minimum of $12.95/month. The climate surrounding the merger has been chillier than expected. FCC chair Kevin Martin has expressed the opinion that the satellite services' federal operational licenses prevent them from being combined into a single company. And Sen. Herb Kohl (D-WI), chair of the Senate Antitrust Committee, has referred to the proposed merger as "a real bad deal for consumers."

When you record a program with your DVR, does it matter whether the hard drive lives in your set-top box or on your cable company's network? Yes it does matter, a federal district court has ruled, effectively killing Cablevision's Remote Storage DVR. Soon after Cablevision introduced the innovative device, it was sued by CNN, Fox, NBC, Paramount, and TBS, who claimed the RS-DVR was not merely recording programs, but rebroadcasting them--a violation of copyright law. Cablevision argued in vain that the device was not rebroadcasting because recording and playback were controlled by the consumer. The decision will affect not only Cablevision's three million New York-area subscribers, but also cable consumers nationwide, by preventing other cable operators from introducing their own network-based DVRs. Cable operators like network DVRs because they're less costly to operate than the conventional kind. Cablevision may appeal. If it drags out the fight long enough, and Congress passes the Fair Use Act, the RS-DVR may get a second chance. The proposed law protects devices "capable of substantial, commercially-significant non-infringing use."

Tubular chic meets comforting conformism.

KEF's KHT5005.2 speaker system and Onkyo's TX-SR674 surround receiver are an odd couple. The KEF speakers are slim, tubular, and chic, the latest thing in décor-friendly sub/sat sets. And the Onkyo receiver? It couldn't be more conventional, conservative, even conformist. It's a plain black box with a very good features set for the price. But could it be that the two complement one another? Could this, in fact, turn into a long-term relationship?