HomeMediaMagazine.com reports today that Judge William Monahan of Superior Court in Santa Clarita, as of March 22, 2012, has denied the stay that would allowed Kaleidescape to continue to sell and operate their media servers while fighting an continuing legal battle with the DVD Copy Control Association (DVD CCA).
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The stay was a key part of Kaleidescape's message to their dealers. They enthusiastically told dealers to keep selling but the judge seems to be saying something different with his refusal of the stay. Kaleidescape suggested that a stay is a normal part of any appeal in the California legal system.
A Kaleidescape representative was not available for comment at the time of press.
Where this leaves Kaleidescape dealers is questionable. Can they or should the keep selling the media server? Will end users get shut off? That's unlikely but its possible that the flow of new products might not be sent to dealers and that dealers might be ordered not to sell them over an extended period of time.
Kaleidescape has been offering technological solutions to the DVD CCA that would force consumers to physically own a DVD disc, just like they do with Kaleidescape's Blu-ray vault system, but the DVD CCA seems to be out for blood. Kaleidescape's leadership isn't afraid to ruffle feathers with studios, industry groups and or the media, thus this could be a battle to the end. Some industry insiders think that Kaleidescape really wants to take the battle all the way to the United State Supreme Court for a final decision. The question is: will there be any business left for them assuming they win on the ultimate stage? Time will tell.