Once in the Kaleidescape system, the DVD content could be stored, organized, and played back at any time, without requiring access to the original DVDs.
It is only after noting the "membership category", executing the agreement, and paying the required fees, will the licensee receive the "CSS General Specifications".
In March 2012, the trial court ruled that Kaleidescape had violated the terms of the contract, and an injunction was issued prohibiting them from selling or supporting the products in question.
Considered in the case were memos written by Kaleidescape's founders, including the reflection that enabling consumers to make permanent backups of DVDs would become "a value--loss proposition for content owners and rental businesses because there is no repeat business ever if everyone were to own [home video library] product.
Judge Rushing stated, "In my view, its product was clearly not designed or intended to facilitate the theft of intellectual property; nobody buys it for that purpose; and if it has that incidental effect, it is no worse in most respects--and better in others--than an ordinary personal computer with freely available DVD-copying software."
It is not a moral imperative," referencing the concern that such a system would enable a user to build an entire DVD library by merely copying rented or borrowed DVDs.
[8] Judge Rushing also noted that the features provided by the Kaleidescape system has "no more tendency to permit 'casual users' to engage in 'unauthorized copying'" than a (far less expensive) personal computer.