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.