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Kaleidescape Triumphant in Court Case, DVD Ripping Ruled Legal

Posted by Zonk on Sun Apr 29, 2007 03:15 PM
from the only-when-you-own-it-netflixers dept.
Jim Buzbee writes "Ever wanted to rip all your DVDs to a big network server so that you could select and play them back to your TV? Up until now, manufacturers have been wary of building a device to allow this type of usage because they've been afraid a lawsuit. The DVD Copy Control Association had claimed this was contractually forbidden, but now a judge says otherwise stating, 'nothing in the agreement prevents you from making copies of DVDs. Nothing requires that a DVD be present during playback.' Kaleidescape has finally won their long-standing lawsuit, a case we first talked about early in 2005."
+ -
story

Related Stories

[+] News: Kaleidescape CEO Speaks Out About CSS Lawsuit 212 comments
An anonymous reader writes "Engadget has an interview with Michael Malcolm, the CEO of Kaleidescape, which you might remember as the high-end DVD jukebox manufacturer that was sued by the DVD Copy Control Association for violating its CSS license. Despite the fact that anyone who can afford a $27,000+ DVD jukebox also usually ends up buying hundreds of movies to load onto it, the DVD-CCA wants them to redesign the Kaleidescape to require the presence of the physical DVD disc in the drive during authentication and playback. Besides defeating the whole purpose of having a jukebox in the first place (none of their jukeboxes allow for copying, streaming, or sharing DVDs), Malcolm says he can't find any clause in their CSS license which would require them to implement this "feature" anyway and they're about to file a counter-action against the DVD-CCA."
[+] Your Rights Online: Criminalizing The Consumer - Where DRM Went Wrong 75 comments
][nTrUdEr writes "The Economist has posted an editorial on how DRM has gone wrong. What ostensibly began as a tool to ensure artists received due compensation for their work has been turned, and now criminalizes the consumer for wanting to use what they have purchased. 'Despite the number of iTunes downloaded for a fee, Apple would be in trouble if people were prevented from transferring legitimately owned CDs to their iPods. The software Apple gives away to iPod customers is designed to let them do just that. Most people think it ludicrous that they can't do the same with the DVDs they own. Now it seems, despite squeals from the movie industry, the law is finally moving in the video fan's favour. The issue in the recent case was whether Kaleidescape, a maker of digital "jukeboxes" that store a person's video and music collections and distribute the entertainment around the home, had breached the terms of the DVD Content Control Association's CSS (content scrambling system) license.'"
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  • by fatduck (961824) * on Sunday April 29 2007, @03:18PM (#18920763)
    Doesn't this mean they'll just change the contract on new DVDs?
    • Re: (Score:2, Insightful)

      by Anonymous Coward
      Doesn't this mean they'll just change the contract on new DVDs?

      Contract? What contract? I don't remember signing a contract. I put my $20 on the counter, the cashier put the DVD in a bag and said, "Have a nice day."
      • Oh, I'm sure they can make the clerk say: "By agreeing this sale, you may not space-shift this DVD to other media. Have a nice day." ;-)
          • It's ignorant pricks like you that make my life miserable. I used to work in retail when i was going to college. It was hell. So many people assume that clerks are either stupid or just plain lesser people. I'm sorry if you run into some boneheads but that is inevitable. In the office i work in now i work with plenty of morons, retail doesn't have a monopoly on stupid people.
            • by Ucklak (755284) on Sunday April 29 2007, @04:49PM (#18921473)
              The other side of the coin in that is that if you work in retail or even better, food service, you come across plenty of people that shouldn't be part of human society.
              People ARE stupid.

              There are stories a plenty of food service or retail employees that come across gems of humans that lack common sense. Those stories are much more interesting than the 'holier than thou' patron that comes across a dweeb employee that is having a bad day.
              • by Grave (8234) <awalbert88NO@SPAMhotmail.com> on Sunday April 29 2007, @05:01PM (#18921547)
                Shopping and dealing with retail employees never made me lose faith in humanity. Working in retail and dealing with so many horrible excuses for human beings has made me question whether we as a race really deserve to exist. But I have faith that Darwin will take care of things.
                    • by thelastquestion (1090169) on Sunday April 29 2007, @10:22PM (#18923625)
                      yes, there are breeds of dogs that would not survive, and you pointed out the reason: MEN did this to dogs, just like they did to pidgeons, etc. which is not natural at all. what you don't seem to get is that the rules of 'what is fittest' have not changed at all. what HAS changed is mankind's ability to alter their environment, which makes the rules no longer apply to humans. there is no longer any significant amount of evolution because we can keep those with normally fatal diseases alive, and stupid fat people aren't eaten by lions and tigers, et cetera. my point is that technology has made it so that anyone can survive, however unfit they are.
      • by LarsG (31008) on Sunday April 29 2007, @03:31PM (#18920879) Journal
        Contract? What contract?

        The contract that DVD player manufacturers enter with the DVDCCA. RTFA?

    • by Andy_R (114137) on Sunday April 29 2007, @03:29PM (#18920859) Homepage Journal
      It's not the contract on DVDs that's being discussed, it's the contract between the owners of CSS and manufacturers who buy into CSS. Kaleidescape signed the contract that gives them the right to make legitimate machines that unscramble CSS, the CSS cartel claim that contract includes a 'thou shalt not make dvd servers' clause, the judge agreed with Kaleidescape that the contract does not say that, since Kaleidescape didn't get to see that particular rule until after they joined the cartel.
      • by crt (44106) on Sunday April 29 2007, @03:40PM (#18920945)
        Right - this was just a contract dispute between Kaleidoscope and the DVDCCA. Other DVD player manufacturers may have similar contracts, and could now build in DVD-ripping/storage, but you can be sure that the DVDCCA will be changing their contracts moving forward to eliminate this behavior in the future.
        • by Marnhinn (310256) on Sunday April 29 2007, @08:14PM (#18922837) Homepage Journal
          From DVDCCA [dvdcca.org]

          February 7th 2007 Announcement:
          An updated version of the CSS Procedural Specifications is available now. A downloadable copy is available by completing the on-line inquiry form.

          That is the document that they submitted to the court as part of the "contract". It is the first update to it since 2005. My guess is they realized they were going to lose and hence the update to the license.
        • by PetoskeyGuy (648788) on Sunday April 29 2007, @08:33PM (#18922939)

          Right - this was just a contract dispute between Kaleidoscope and the DVDCCA. Other DVD player manufacturers may have similar contracts, and could now build in DVD-ripping/storage, but you can be sure that the DVDCCA will be changing their contracts moving forward to eliminate this behavior in the future.
          I'm sure Kaleidoscope hopes they do change the license to prevent storage in the future. They already have the machines developed and their agreement is already in place. It sounds like they may be one of the only licensee to not agree to the DVD backup clause. If the DVDCCA decides to prevent this type of thing from happening in the future they would just be placing a barrier to entry to future Kaleidoscope competitors.
      • Re: (Score:3, Insightful)

        *cough* *clears throat* *cough*

        If you don't know what you're talking about...at least try to RTFA.

        This contract doesn't cover DVDs, this is the contract between the DVDCCA and Device Manufacturers.
  • by jafo (11982) * on Sunday April 29 2007, @03:18PM (#18920765) Homepage
    "Ever wanted to rip all your DVDs to a big network server [...]"

    No, I want a butt-load of DVD jewel boxes occupying cabinet after cabinet in my living-room so they'll be convenient in the event I might want to watch one. This is much better than being stored in boxes in the basement, and streaming the content off a sever, also in the basement.

    I have literally avoided buying DVDs in the past because I didn't want to increase the clutter of storage.

    Sean
    • "Ever wanted to rip all your DVDs to a big network server [...]"
      No, I want a butt-load of DVD jewel boxes occupying cabinet after cabinet in my living-room so they'll be convenient in the event I might want to watch one. This is much better than being stored in boxes in the basement, and streaming the content off a sever, also in the basement.

      Well, this is slashdot. You would think accessing boxes or a server in the basement was as simple as rolling out of bed... <rimshot />

  • iTunes ripping? (Score:5, Interesting)

    by mh101 (620659) on Sunday April 29 2007, @03:22PM (#18920795)
    Does this mean Apple will be able to legally add DVD ripping to iTunes? If so, that could help sell more AppleTV units, especially in all the countries that can't buy movies from iTS.

    • Re:iTunes ripping? (Score:5, Insightful)

      by r3m0t (626466) on Sunday April 29 2007, @03:39PM (#18920941)
      No. Firstly, the lawsuit was not about "legally writing ripping software" - it was specifically about whether the companies who had gained a license for Content Scrambling System can write those programs. It doesn't mean anybody can use DVD Shrink to break "protection".

      There are a few problems that would face Apple if they wanted to add that functionality:
      1) DVD CCA is appealing the decision.
      2) Apple would need to get a license for CSS, and DVD CCA will probably change the terms of the license to disallow such programs.
      3) Apple risks pissing off the movie studios that offer video on iTunes stores. (AFAIK, only Disney so far.) People expect to be able to rip CDs, so that's OK. But if people aren't expecting to rip DVDs, why let them? It would cannibalise sales from iTunes Video Store.
      4) The Kaleidoscope system maintained the copy protection, whereas iTunes would need to downscale and crop/letterbox the video in order to make the feature useful to smaller iPods - and in the process, re-protect it somehow.
      • Re:iTunes ripping? (Score:5, Insightful)

        by Wesley Felter (138342) <wesley@felter.org> on Sunday April 29 2007, @03:48PM (#18921003) Homepage
        Apple already has a CSS license for their "DVD Player" app, but your other points stand.
      • Re:iTunes ripping? (Score:4, Interesting)

        by Lumpy (12016) on Sunday April 29 2007, @04:40PM (#18921387) Homepage
        Which is why we only sell mpeg/Divx content playback servers. Sorry sir this will NOT rip DVD's.

        WE then leave a unlabeled CD with them with copies of DVD shrink and DVD decryptor and the web address to buy anyDVD and Fair Use Wizard.

        What the customer does on their own is not or problem, we simply sold them a video playback server.

        They want to make it easy for joe-blow to rip his own dvd's into the system. it aint gonna happen. Sony already screws with everything and the best kaladiescope server made cant cope with it, you still haveto rip to a PC with special software to get past some of the protections.

      • Re: (Score:3, Insightful)

        3) Apple risks pissing off the movie studios that offer video on iTunes stores. (AFAIK, only Disney so far.) People expect to be able to rip CDs, so that's OK. But if people aren't expecting to rip DVDs, why let them? It would cannibalise sales from iTunes Video Store.

        Actually, the key for Apple is to create a market where people have an incentive to put movies into iTunes in the first place. Once people put in movies they already own, they have a library and future purchases are more likely to be made onl

      • by Overzeetop (214511) on Sunday April 29 2007, @06:26PM (#18922183) Journal
        Anybody can use DVD shrink to rip (okay, you can't - you need a deccrypter like dvd decrypter, but play along) discs you own for personal use. It's right in the DMCA - your fair use rights have never technically been diminished.

        What you can't do is rip for someone else, or help anyone to rip. The distribution of DVDdecrypter is illegal (per the DMCA), but it's okay to write the software, posess the software, and use the software to decrypt for personal reasons. That's the fucked-up catch - you can do anything you want, but you can't help anybody else do it.

        I know that this is hard to understand, but I figured I'd post it anyway.
        • Re: (Score:3, Insightful)

          Ummm, as far as I'm aware you're completely and utterly wrong. Could you please point out the section in the DMCA you speak of.

          Oh, and DVD Shrink is perfectly capable of decrypting CSS on its own. Have you ever actually used DVD Shrink?
            • by cpt kangarooski (3773) on Monday April 30 2007, @02:31AM (#18924779) Homepage
              Well, at least yours is a better bit of misinformation than usual.

              But you're still wrong, and I suspect that the cause is that you didn't read carefully. To wit:

              17 USC 1201
              (a)(1)(A) No person shall circumvent a technological measure that effectively controls access to a work protected under this title. ...

              (2) No person shall manufacture, import, offer to the public, provide, or otherwise traffic in any technology, product, service, device, component, or part thereof, that--
              (A) is primarily designed or produced for the purpose of circumventing a technological measure that effectively controls access to a work protected under this title;
              (B) has only limited commercially significant purpose or use other than to circumvent a technological measure that effectively controls access to a work protected under this title; or
              (C) is marketed by that person or another acting in concert with that person with that person's knowledge for use in circumventing a technological measure that effectively controls access to a work protected under this title.
              (3) As used in this subsection--
              (A) to "circumvent a technological measure" means to descramble a scrambled work, to decrypt an encrypted work, or otherwise to avoid, bypass, remove, deactivate, or impair a technological measure, without the authority of the copyright owner; and
              (B) a technological measure "effectively controls access to a work" if the measure, in the ordinary course of its operation, requires the application of information, or a process or a treatment, with the authority of the copyright owner, to gain access to the work.


              So no, no one can unauthorizedly decrypt an encrypted DVD, since that constitutes circumvention, and no one can make or traffic in devices, including software, which can do it.

              What you were citing was not 1201(a), which has to do with circumvention, but 1201(b), which has to do with copyright protection. The reason that 1201(b) lacks a parallel to 1201(a)(1)(A) is because it doesn't need one. Breaking a copyright protection mechanism is copyright infringement, and is already covered pretty adequately elsewhere in the law.

              Furthermore, that last bit about "OTHER RIGHTS, ETC., NOT AFFECTED" indicates that previous fair use law remains in force, allowing the legal owner of a copy to make an additional copy for backup purposes, so long as the original remains in their possession.

              Well, two caveats. First, fair use doesn't always permit the owner of a copy to make a backup. It only permits that if, under all the circumstances, it would be fair. Fair use is a case-by-case issue, and you cannot make accurate blanket statements as to what is and isn't fair. It is entirely possible that while Alice might be able to make such copies pursuant to fair use, Bob might not be able to, due to their differing circumstances, even if each is the owner of the copies from which the use is made.

              Second, so what? Fair use is a defense to copyright infringement. It is not a defense to circumvention. If you unauthorizedly decrypt a DVD, even if it is a fair use, you still circumvented and can be sued for that. This is the downside to 'other defenses not affected' -- they weren't enlarged to handle the new situation.
  • Misleading Title (Score:5, Informative)

    by sangreal66 (740295) on Sunday April 29 2007, @03:30PM (#18920865)
    As usual, the title Zonk has chosen for this post ("Kaleidescape Triumphant in Court Case, DVD Ripping Ruled Legal") directly contradicts the actual article:

    Because of this ruling, the Judge did not have to get into copyright issues, so the Kaleidescape ruling has no copyright implications. It is not a statement on the legality of ripping DVDs.
  • This case has exactly *zero* precedential value, unless you live in Santa Clara, CA, and then only if your case comes in front of the same judge. And you can bet this case will be appealed to a court that actually can create binding authority.

    For a group of people so obsessed with IP law, most of you /.-ers have no idea how the American legal system works: Trial court cases are not precedent for future cases. Only published appellate cases constitute precedent, and then only in their own jurisdiction.

    IAALBNYL (I Am A Lawyer But Not Your Lawyer). This is not legal advice. Do not rely on it as such. This is merely a layman's discussion of general issues. YMMV.

    • This case has exactly *zero* precedential value, unless you live in Santa Clara, CA

      I guess that's me, then.

      and knowing that its the silicon valley, probably a quarter of slash is also here, too.

    • by Anonymous Coward on Sunday April 29 2007, @04:24PM (#18921273)
      For a group of people so obsessed with IP law, most of you /.-ers have no idea how the American legal system works:

      That is why you who are lawyers need to speak up and explain it to us. /. is full of people from all type of backgrounds. Most of these people have a great insight into their speciality. They need to speak up when something is wrong, so that the rest of us can be educated.

      Like many /. readers, I come here to be educated as well as entertained. This is due to the quality of people that /. attracts. (Granted some /.'ers have no clue about anything)
      • Re: (Score:3, Insightful)

        The problem is when you get the majority spouting nonsense while acting like they know what they are talking about. I've seen that happen numerous times, and I don't even bother correcting at that point because it seems like a lost cause. One culprit is people who post on SCO articles. I still see Slashdot posters who think it's a patent case, or who don't know the difference between Caldera and SCO.

        That's the example that came to mind right away. I could name some more if I thought about it for a minute.
    • Uh, even if this was a supreme court decision, the precedent wouldn't be useful for slashdotters because slashdotters aren't CSS licensees. This was a breach of contract case and only "legit" companies with deep pockets get to make a deal with the DVD-CCA. About the only impact this may have on slashdot readers is existing CSS licensees might start making devices like Kaleidascape. If the DVD-CCA doesn't like this behavior, expect the language of the CSS license to change.

      For your client's sake, I hope y
  • Does this mean that Kaleidescape can rip dvds to a server, sell us products that do the same or that we ourselves can? This paragraph:

    Because of this ruling, the Judge did not have to get into copyright issues, so the Kaleidescape ruling has no copyright implications. It is not a statement on the legality of ripping DVDs.

    suggests that it applies only to them. Or have I missed (or missread) something?
    ---
    How exactly did the butcher baker and the candlestick maker end up in a tub together?
    ---

    • Re: (Score:2, Informative)

      No, you understand it right. The ruling only applies to the Contract signed between the two parties. Other contracts may be different, or heck, the appeals court may overrule anyways. However, Kaleidescape could still be liable for copyright violations. That will have to go to a federal court to be determined.
    • As I understand it the case means Kaleidescape can sell machines that store and re-transmit DVD data you give it. As I understand it the thought isn't you are ripping the DVD, the thought is you are using the Kaleidescape server (which happens to rip the DVD, which Kaleidescape's contract allows it to do).
  • RTFA... (Score:5, Informative)

    by igotmybfg (525391) <slashdot@danielthompso n . n et> on Sunday April 29 2007, @03:36PM (#18920903) Homepage
    From the article:

    Because of this ruling, the Judge did not have to get into copyright issues, so the Kaleidescape ruling has no copyright implications. It is not a statement on the legality of ripping DVDs.


    In other words, the case was about whether or not a single, specific contract was breached (which is fairly common type of case in civil courts) - it is not some sweeping endorsement of DVD ripping, as the headline would have you believe. The ruling merely states that the contract Kaleidescape signed with the DVD CCA doesn't preclude ripping DVDs, aka a question of contract law, not copyright law.
    • Re: (Score:3, Interesting)

      Yes, but all the other vendors signed the same contract, so presumably they can all rip DVDs now. Also, the CSS contract was the only thing preventing legal personal DVD ripping tools, so it is important to have the last roadblock taken down.
      • My guess would be that the MPAA will still put up a fight based on copyright/fair use (or lack thereof).
  • Just the thing to start the week off right. With 40 DVDs already ripped and sitting on a 320 gb HD, I can get to work on the next few dozen, dozen and work in peace for a change :)
  • Oh the Irony!!! (Score:3, Insightful)

    by popo (107611) on Sunday April 29 2007, @09:34PM (#18923323) Homepage

    This actually makes me want to go and buy DVD's ... and the industry is opposed to it.

    • by gilroy (155262) on Sunday April 29 2007, @04:04PM (#18921115) Homepage Journal
      Blockquoth the poster:

      Understand I'm rather a moderate as far as fair use rights go. I don't feel legally the user should be given carte blanche to copy everything they own an unlimited number of times.


      Why not? I'm not trying to troll -- I honestly would like to know what your philosophy is. Why would a limited number of copies be OK but an unlimited not?

    • Re:Reasonable but... (Score:5, Informative)

      by Jah-Wren Ryel (80510) on Sunday April 29 2007, @05:09PM (#18921605)

      Understand I'm rather a moderate as far as fair use rights go. I don't feel legaly the user should be given carteblanche to copy everything they own an unlimited number of times.
      What a perfect example of how successful the MAFIAA's publicity campaign has been when people who think they should be able to do whatever they want with whatever they've purchased are considered the "extremists" and the ones who favor the reach of corporate control into their own living room consider themselves "moderate."

      I don't feel that DVD-video should be treated much differently than software, where the law permits one backup of a given disk.
      No, the US law does not restrict the number of backups - see Title 17, Section 117 - Limitations on exclusive rights: Computer programs [copyright.gov] where it says:
      • 2 that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that continued possession of the computer program should cease to be rightful
      thus indicating that multiple archival copies are allowed.
    • I don't feel that DVD-video should be treated much differently than software, where the law permits one backup of a given disk. Unless the license says otherwise, you may install the media on one device.

      So does RAID5 count as 1 backup or 1 and 1/n backups? Copyright law is silly because it's still concerned with physical copies 50 years after digital computers effectively made copies free.
    • Re: (Score:3, Interesting)

      but these guys weren't breaking the CSS encryption on their product. They kept the data encrypted on their server... the user can't access it to make a copy elsewhere, it's just stored. By being official licensees there are no copyright issues because the USER isn't making any copies. In short they've implemented the kind of system the MPAA people keep saying would be "legal" with all the appropriate protections. I'd like to see Apple jump on board with one of these as and iTV attachment with one of thos
    • by DrYak (748999) on Sunday April 29 2007, @04:09PM (#18921151) Homepage
      It not the actual action of ripping the software that is disputed (which theoretically would fall in the "personal backup" category).

      It's the fact that they are running officially licensed code from the CSS cartel to uncrypt the DVD prior of putting them on the server, and the CSS cartel sued them pretending that their license should be interpreted as "using the code to make DVD server isn't allowed". The whole suit was whether or not Kaleidoscope could be forbidden to do this based on the licensing term.
      Result : No, they can't be stopped, because at the time of signing the licensing terme weren't clear enough to forbid the server.

      This has nothing to do with DVD John's work. His work is his own code made to circumvent the CSS encryption (using the fact that the algorithm itself is piss-poor and only marginally better than a rot13). He is not using code from the CSS cartel and thus the interpretation of that code's license doesn't apply.
      - Because it's a code done to grant users' access to content that they have legally bought, because it provides a solution in situation which lacks a viable option (like enables DVD playing on Linux and other systems, even if software is only produced for Windows & Mac) and because it's doesn't contain original code from the CSS cartel (no way. It doesn't to the same thing as the official code. DVD Jon's code brute-forces the decryption key using flaws in the CSS implementation), it is legal in most juridiction.
      - In the USA, because of the DMCA and the fact that DVD Jon's code is used to circumvent the CSS encryption it is illegal, even if it the only solution for legally owned material on Linux and even if the CSS encryption is to flawed to be considered as an efficient encryption. Only some exception to the DMCA may be invoked (using DVD Jon's code to decrypt DVDs for school or using it once DVDs are deprecated)

      The situation is different for HD-DVD and BlueRay Discs with the recent work of Muslix64. On that case, there's no problem with the code it self, its just a re-implementation of a publicly described algorithme (AACS decryption). The whole trick is to provide the actual keys needed to decrypt the data on websites or P2P networks. The code itself isn't illegal. The key sharing is what can be contested by the AACS makers.
    • by rm69990 (885744) on Sunday April 29 2007, @08:33PM (#18922937)
      RTFA and you shall discover the answer to your question. Is it really too much to ask?

      Slashdot should have 2 conversations for every article. One for people who RTFA, one for those who don't. I'd have to sort through less garbage when reading Slashdot.
      • Re: (Score:3, Interesting)

        Except if they have to store the entire disk, unencrypted, then you lose half the point of ripping it to the computer in the first place. First problem is that most DVDs would probably take up 6-8 Gigs of space. Meaning a 500 GB hard disk could only store 71 movies. That sounds like a lot, but once you start getting into TV Seasons, it doesn't store all that much stuff. Second, is that it probably doesn't remove any of the FBI Warnings, special features, or Menus. I really like to just skip all the ext