Kaleidescape will be forced to stop selling its DVD movie servers next month, per a new court ruling issued earlier this week.

Earlier this month, Kaleidescape had lost another fight in a long and on-going court battle with the DVD Copy Control Association (CCA), which licenses the technology that controls the copy protection for DVDs. The DVD CCA sued Kaleidescape in 2004 for breach of contract (not copyright violation), saying that the license did not permit Kaleidescape’s movie servers to play movies from copies of the DVDs stored on a hard disk.

The case has been through a series of wins and appeals, with Kaleidescape originally winning in 2007, but the win being overturned in 2009. On March 8th, the court ruled that Kaleidescape had violated the contract as the DVD CCA claimed, with presiding Judge William Monahan issuing a permanent injunction, which would prevent Kaleidescape from selling the movie servers — at least as they currently exist. Kaleidescape immediately appealed the decision, saying in a statement on the company’s website that the company “believes that under California law the injunction order should not come into effect unless the California Court of Appeal affirms Judge Monahan’s decision.”

Kaleidescape requested a stay in order to continue selling the DVD movie server while it appealed the case, but this request was denied on March 26th. The injunction goes into effect on April 8, 2012.

This ruling explicitly concerns Kaleidescape’s DVD movie servers and does not affect any of Kaleidescape’s other products, including its Blu-ray movie servers.

To see Kaleidescape’s statement on the case from March 12, click here: http://kaleidescape.com/news/pr/legal-update.php

To see the full injunction order, click here: http://www.kaleidescape.com/files/legal/DVDCCA-vs-Kaleidescape-Injunction-Order-20120308.pdf