Kaleidescape
Encyclopedia
Kaleidescape, Inc. is a Sunnyvale
Sunnyvale, California
Sunnyvale is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley located in the San Francisco Bay Area...

, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

-based private company, founded in 2001, which designs multi-room home entertainment server systems that store and stream video and audio content (such as movies, television shows, and music) to "player" appliances connected to televisions. The company began marketing its products in 2003. Research and development is carried out partly by Kaleidescape Canada, Inc. based in Waterloo
Waterloo, Ontario
Waterloo is a city in Southern Ontario, Canada. It is the smallest of the three cities in the Regional Municipality of Waterloo, and is adjacent to the city of Kitchener....

, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....

.

History

Kaleidescape was founded in 2001 by Michael Malcolm, Dan Collens, and Cheena Srinivasan. Malcolm had previously founded Network Appliance
Network Appliance
NetApp, Inc. , formerly Network Appliance, Inc., is a proprietary computer storage and data management company headquartered in Sunnyvale, California. It is a member of the NASDAQ-100 and is also Fortune magazine's fifth best place to work...

 and CacheFlow. Malcolm self-funded the startup, and the company spent over two years developing its technology in "stealth mode
Stealth mode
In business, stealth mode is a company's temporary state of secretiveness, usually undertaken in order to avoid alerting competitors to a pending product launch or other business initiative...

". Kaleidescape is reported to be "solidly" profitable and was funded without venture capital money, although it does not disclose its finances as a private company.

Fair Use

In 2004, the DVD Copy Control Association, the licensor of CSS (content scramble system), the technology for the copy control of DVDs, sued Kaleidescape for breach of contract
DVD Copy Control Association, Inc. v. Kaleidescape, Inc.
DVD Copy Control Association, Inc. v. Kaleidescape, Inc., 176 Cal. App. 4th 697 is a legal case heard by the California Court of Appeal concerning breach of contract and breach of the implied covenant of good faith and fair dealing. It discusses incorporation by reference regarding a supplemental...

. The DVD CCA alleged that its CSS License did not permit Kaleidescape's movie servers to serve DVDs from copies on hard disk. They sued to stop the company from selling these movie servers. Kaleidescape Systems allow users to rip
Ripping
Ripping is the process of copying audio or video content to a hard disk, typically from removable media. The word is used to refer to all forms of media. Despite the name, neither the media nor the data is damaged after extraction....

, store, and stream
Streaming media
Streaming media is multimedia that is constantly received by and presented to an end-user while being delivered by a streaming provider.The term "presented" is used in this article in a general sense that includes audio or video playback. The name refers to the delivery method of the medium rather...

 video from DVDs. The case, although only for breach of contract and not a copyright case, was considered by some to be an important recent test of fair use
Fair use
Fair use is a limitation and exception to the exclusive right granted by copyright law to the author of a creative work. In United States copyright law, fair use is a doctrine that permits limited use of copyrighted material without acquiring permission from the rights holders...

 precedent, given advancements in technology and the digital media rights field. In 2007, Kaleidescape won the case. In fact, the DVD CCA had alleged that Kaleidescape had breached terms in a document called the General Specifications. The court ruled that the General Specifications are not even part of the contract. .
On August 13, 2009, a California appellate court reversed the lower court's decision that the General Specifications is not part of the CSS License, and sent the case back to the lower court for further proceedings (see DVD Copy Control Association, Inc. v. Kaleidescape, Inc.
DVD Copy Control Association, Inc. v. Kaleidescape, Inc.
DVD Copy Control Association, Inc. v. Kaleidescape, Inc., 176 Cal. App. 4th 697 is a legal case heard by the California Court of Appeal concerning breach of contract and breach of the implied covenant of good faith and fair dealing. It discusses incorporation by reference regarding a supplemental...

). Contrary to news reports, the appellate court did not find that Kaleidescape violated the contract.
.
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External links

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