When it rains it pours -- right on the heels of the punishing blow dealt to RealDVD, the money-laden Kaleidescape crowd suffered its own setback at the hands of the law. You just know that the DVD CCA (Copy Control Association) appealed the 2007 ruling that allowed Kaleidescape owners to rip DVDs to their media servers, and yesterday a California Appeals Court overturned that ruling. Next stop -- the Santa Clara Superior Court, which could place an injunction on Kaleidescape if the appeal is upheld. It's not over yet, but we're prepping the soundboard with ominous music, boos and noisy hand-wringing. Whatever (and whenever) the outcome, we can only hope that Blu-ray's Managed Copy comes to the scene sooner rather than later and settles this issue for our beloved HD content

Something tells us Kaleidescape has a man (or woman, to be fair) on the inside, else United States District Court Judge Marilyn Patel is just downright trifilin'. In every visible way, RealNetworks' proposed RealDVD player was exactly what Kaleidescape was, but for people with annual salaries far less than $9,854,392,220. Regardless of our opinion, a preliminary injunction has just been passed down from The Almighty in the robe, which blocks the sale of the RealDVD software here in the US. The six major movie studies filed the suit last September, alleging that it "illegally violated their right to restrict the use of their movies in digital form." Evidently those that matter agree. A RealNetworks spokesperson took the time to vent their feelings on the whole ordeal, and since we know you're curious, we've pasted it below for your convenience.

We are disappointed that a preliminary injunction has been placed on the sale of RealDVD. We have just received the Judge's detailed ruling and are reviewing it. After we have done so fully, we'll determine our course of action and will have more to say at that time.

[Via Electronista]

It wasn't long ago that RealNetworks and its kludgy Player software were the bane of computer users everywhere. But, a few legal accusations later, Real is now the apple in the eye of every fair use advocate, fighting for the right for users to make legal copies of DVDs -- so long as you make them through its RealDVD software, of course. The company is now escalating its legal battle against Hollywood big wigs, suing the six major movie studios and the DVD Copy Control Association for anticompetitive activity, asking for monetary damages due to the sales it has lost since the industry asked for that initial injunction against RealDVD. We're not entirely sure who's going to come up on top of this one, but if Kaleidescape can survive the CCA, maybe Real can too.

Let's face it -- quite a lot is resting on the outcome of this case. For months now, RealNetworks has been unable to legally sell its RealDVD movie ripping software after a court issued a temporary restraining order that remains valid until it's decided if the application violates the DMCA (Digital Millennium Copyright Act). Now, the software is finally having its day in court, and the outcome could shape the future of the DVD player (for better or worse). You see, Real has already assembled a prototype Facet device that hums along on Linux; essentially, this DVD playing machine would sell for around $300 and could store up to 70 movies internally. On the surface, this sounds entirely like a poor man's Kaleidescape, but only time will tell if The Man agrees. Cross your fingers folks, we get the feeling fair use advocates are going to need the luck.

We knew Hollywood wouldn't let RealNetworks sell its RealDVD DVD-ripping-and-archiving software without a fight, and right on schedule, the six major studios have filed a lawsuit seeking to prevent it from being sold. Of course, RealNetworks has been planning on hiding behind that Kaleidescape ruling all along, but straight CSS circumvention isn't really what's at the heart of the suit: according to the studio's request for a restraining order, consumers won't be able to contain themselves in the face of RealDVD's voodoo magic and will start ripping rental DVDs en masse -- seriously, the suit calls the incentive to do so "all but overwhelming." Here's a hint, guys: if you believe the temptation to do something is that strong, it probably means you can get people to pay to do it -- and you should probably be working out a business model that embraces consumers instead of funding new BMWs for your lawyers while actual piracy tears down the fragile house of cards your entire industry is built on. Or you know, whatever.