Akin Gump Secures Victory for Leading DVD Coalition in License Dispute

(New York) An Akin Gump Strauss Hauer & Feld LLP team led by IP practice chair Steven M. Zager recently secured a victory for its client, the DVD Copy Control Association (DVD CCA), in a long-running dispute against Kaleidescape, Inc., a designer and manufacturer of DVD and Blu-Ray movie servers.

The March 8, 2012, ruling by the Superior Court of California found that Kaleidescape had breached its license agreement for use of DVD CCA’s Content Scramble System (CSS), used to protect against unauthorized consumer copying of DVDs. This ruling follows an appellate victory in 2009 that reversed an initial adverse judgment against DVD CCA. The appellate decision found that, contrary to the initial court ruling, the technical specifications that DVD CCA claimed imposed anticopying obligations on CSS licensees were, in fact, part of the license agreement. The case was remanded to the Superior Court, which ruled in favor of DVD CCA.

Following this decision, Mr. Zager stated, “The DVD CCA appreciates Judge William Monahan’s thorough review of the issues in this case and welcomes the decision finding Kaleidescape in breach of its contract with the DVD CCA and imposing a permanent injunction against Kaleidescape. The Court recognized what the DVD CCA has maintained all along: Kaleidescape agreed to a contract that mandated certain requirements with which devices must conform in order to comply with the Content Scramble System (CSS). When it developed and marketed its video server systems, it knowingly violated those requirements.

The DVD CCA represents the interests of the personal computer, consumer electronics and content industries as well as DVD consumers. It is committed to enabling high quality entertainment to be available for use on DVDs at home and elsewhere. The ability to make that entertainment available depends upon a uniform set of rules upon which all participants in these industries can rely.

We believe that this Court’s decision in the Kaleidescape matter, along with the U.S. District Court’s ruling on RealDVD, emphasize the importance of those rules to the benefit of consumers, developers and manufacturers.”

The DVD CCA is a not-for-profit corporation that licenses the CSS to manufacturers of DVD hardware, discs and related products.

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 850 attorneys in offices throughout the United States, Europe, Asia and the Middle East. In February 2012, the firm announced the opening of its second Asian office, located in Hong Kong.

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