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DVD-CCA gets ready to rumble - October 24, 2007

The DVD Copy Control Assn. is set to consider a proposed amendment to the CSS license at its next meeting that would spell out the rules for making limited authorized copies of encrypted DVDs, Media Wonk hears. The proposal, submitted by three studio representatives, is an attempt to revive discussions toward so-called managed-copy that stalled 18 months ago over studio demands for enhanced DVD security features in exchange for permitting authorized copies. The latest proposal drops those demands.

However, a second proposal submitted by the same three studio representatives, aimed at undoing the verdict in the Kaleidescape case, threatens to turn the Nov. 7 meeting in Los Angeles into a contentious affair, possibly scuttling progress on managed-copy.

Although the proposed amendment does not refer to Kaleidescape by name, it would explicitly prohibit the playback of DVD content by licensed devices unless the original DVD is present in the drive. Such a requirement would pretty much wreck the whole Kaliedescape gestalt, which is all about replacing bulky DVD collections with a nifty home server for storage and playback.

As Media Wonk has reported before, Kaleidescape founder and CEO Michael Malcolm has threatened to sue the members of DVD-CCA on antitrust grounds should they attempt retroactively to outlaw Kaleidescape-type servers.
While none of the lawyers Media Wonk has talked to thinks Kaleidescape would have a terribly convincing antitrust case, it probably has enough of a claim to compel discovery of documents, take depositions and generally make things painful for all concerned.  And that's probably enough to deter the CE and IT companies in DVD-CCA from picking the fight.

Which can only make you wonder why the studios would bring it up at all at this point.

Managed-copy is going to be a hard enough sell to the CE companies as it is, most of whom are far more interested at this point in selling Blu-ray Disc and HD DVD players than new-fangled standard DVD players. If the studios blow up the meeting over Kaleidescape it's not likely to make the CE companies more cooperative on managed-copy.

For their part, the IT companies in DVD-CCA probably wouldn't mind having managed-copy, but they're frankly doing well enough now with unmanaged copy, thank you, that they could live without a managed-copy amendment--especially if it gets mixed up with Kaleidescape.

Who knows? Maybe the Kaleidescape amendment is a stalking horse, a proposal designed to be traded away in exchange for managed copy.

Stay tuned for more in a future post.
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