Ultra-high-end
DVD server manufacturer Kaleidescape is reportedly being sued by the
DVD Copy Control Association in an effort to keep the company from
selling any more of their products. The suit alleges that
Kaleidescape’s products allow people to illegally make copies of movies
using the Kaleidescape server.
Kaleidescape has historically been incredibly careful – if not paranoid
– about such lawsuits and has gone to lengths to ensure that their
products live up to the agreements that the company has with Hollywood
movie studios. Their servers, which start in price from $27,000 and
range to over $100,000, depending on how many rooms are involved and
how much storage a client desires, are unique computers that are hard
(if not borderline impossible) to connect to peer-to-peer networks.
Kaleidescape can uniquely distribute video from one main location to
numerous rooms.
While the DVD Copy Control Association has reportedly been successful
in past litigation, Hollywood should be looking at the big picture with
out-of-the-box companies like Kaleidescape. The traditional box office
business model makes billions upon billions of dollars now and will
continue to do so for years to come. Even as box office numbers soar,
there are other issues to consider as consumers invest (by the millions
per month) in HDTV-based home theaters. It is essential for Hollywood
to find new ways of distributing encrypted video content (ultimately in
HDTV) in the coming years for the movie industry to remain the cash cow
it has been for the past century.
Michael Malcolm, one of Kaleidescape’s founders told Audio Video
Revolution that “We are prepared to fight these legal challenges both
financially and emotionally.” In the event Kaleidescape wins there will
likely be precedent setting decisions that will set the tempo for the
entire video server business – a category being carefully watched by
top AV manufacturers as well as giant computer companies looking for a
way to monetize selling entertainment via a PC.
Sources:
CNET.com
Various Websites