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Like all manufacturers of DVD players, Kaleidescape has a license to use the Content Scramble System (CSS) from the DVD Copy Control Association (DVD CCA). CSS is the method used to scramble video and audio data on DVDs. In 2004, the DVD CCA sued Kaleidescape for breach of contract, claiming the Kaleidescape System violates the CSS license agreement because it copies DVDs to hard disks and enables playback without the DVD disc being present.

On March 29, 2007, Judge Leslie C. Nichols of the California Superior Court ruled that Kaleidescape was in full compliance with the CSS license agreement. As part of his statement of decision, Judge Nichols noted Kaleidescape's good faith in its efforts to ensure that its products were fully compliant.

The DVD CCA appealed, and on August 12, 2009, the California 6th District Court of Appeal remanded the matter back to the trial court.

On March 8, 2012, Judge William J. Monahan of the California Superior Court ruled in favor of the DVD CCA and issued an injunction (that did not come into effect) that states that any Kaleidescape System sold after the effective date of the injunction should not play a DVD from a copy on hard disk.

On July 20, 2012, the California 6th District Court of Appeal granted Kaleidescape's petition for a writ of supersedeas. The writ stays the injunction that was issued by the Superior Court. As a result, Kaleidescape will be able to continue manufacturing and selling Kaleidescape Systems with their current features while the appeal is pending. The appeal process may take a year or more.

About Kaleidescape
Kaleidescape designs and manufactures the world's leading DVD and Blu-ray movie servers, products that deliver the premier movie-watching experience for your home. The Kaleidescape System, renowned for its intuitive user interface, presents your entire collection of movies on any TV in any room, and forever changes the way you enjoy movies. Kaleidescape's innovative products and services are protected by 67 patents issued and pending. Founded in 2001 and headquartered in Sunnyvale, California, Kaleidescape sells its movie servers through custom audio and video installers throughout the world.

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