Paul Sweeting is the editor of ContentAgenda.com and a columnist for Video Business. He has covered the home entertainment industries since 1985 for Billboard, Variety, Publishers Weekly and other leading business publications. He is based in Washington, DC.
1) Although the studios hated the idea of Kaleidescape users copying their DVDs, they never actually sued the company for copyright infringement or for circumventing copy-protection. Instead, they were content to let DVD-CCA bring charges that, as a manufacturer (or reseller) of DVD drives, Kaleidescape violated the terms of the license governing decryption of CSS-encoded content, which DVD-CCA claimed prohibits the making of “persistent” copies of CSS content that can be played back without the original disc in the tray. The judge in the case found that the CSS-license contract doesn’t actually say that so Kaleidescape was not in breach.More to come.
Details of RealDVD are still sketchy. But RealNetworks says it provides consumers with a “legal way” to copy their DVDs. Presumably, that means the software, like Kaleidescape’s media servers, doesn’t circumvent CSS either, but decrypts the content using a licensed “software decryption module” before copying it to a hard drive. In other words: functionally identical to the Kaleidescape system.
Unlike Kaleidescape’s $10,000 home media servers, however, RealDVD is a $30 piece of software. Instead of a relative handful of rich gadget freaks (many of whom, incidentally, work in Hollywood) and a few high-end manufacturers, you’re now talking about potentially millions of consumers copying DVDs.
If RealDVD is able to slip through the same contractual loophole as Kaleidescape, the studios’ only legal option if they want to stop it would be to sue Real for enabling or inducing copyright infringement. But that would almost certainly bring on the very showdown the studios sought to avoid by going after Kaleidescape on the CSS license: Asking a court to decide whether consumers have a fair-use right to copy their own DVDs for space-shifting or format-shifting purposes.
2) According to the initial reports, RealDVD is not capable of determining whether the DVD being space-shifted is one the user owns, or one that came from Netflix. Doing nothing, therefore, could have the effect of all-but legalizing rent, rip and return.
And once again, you’re not talking about a few folks with $10,000 media servers but pretty much anyone with thirty bucks and a Netflix account.
What irony that the studios are totally up in arms because Rob has the cohones to respond to consumer demand. Rob has made DVDs more attractive to consumers and that really is pissing off the studios. Yes, Rob and his friends at the NY Times, WSJ, and of course our lord and savior Paul Sweeting have created the perfect storm – DVD Ripping is now mainstream. The studios must prefer their plummeting DVD sales. And shame on Rob for encrypting these DVDs with a real DRM, which I assume actually inhibits coping unlike CSS. The studios would rather push consumers to solutions like AnyDVD that just strips CSS and let’s people really go to town.