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Kaleidescape legal update

iansilv said:
I think Kaleidescape is going to give an update when the near-term legal options are exhausted. As in, when they know for sure whether the stay on the I junction will be granted or not, as that affects the next two years.

K is not a company to make uncertain announcements or give play-by-play commentary.
Click to expand...

JerryL said:
Most companies aren't/ won't.

Will Apple tell us whats going on with all their on going litigation? Does some of it have the potential to really affect their business? I donno- I would imagine in the worst case scenario it does.
Click to expand...

I don't want to give the impression that I want Kaleidescape to disclose anything about the legal battle that isn't already in the public domain. My position is and has always been that the future of this company does not and should not be dependant on the outcome of this contract dispute. I would like them to strengthen their public position on down stream strategy that demonstrates that reality.

Peter
 
nineball said:
Actually with over a hundred billion dollars cash on the balance sheet and no long term debt I suspect they can weather just about anything........

In my opinion the only thing that can really hurt Apple is Apple.

Peter
Click to expand...

It would appear so but consider if they have a flop of a product and that begins to hurt their earnings and that in turn hurts their stock price and that in turn gets people looking into them and that in turn causes the stock price to further decline. Also much of their cash is outside the USA and they can't or won't bring it back in to the USA.

There are always things that can burn you.
 
nineball said:
I don't want to give the impression that I want Kaleidescape to disclose anything about the legal battle that isn't already in the public domain. My position is and has always been that the future of this company does not and should not be dependant on the outcome of this contract dispute. I would like them to strengthen their public position on down stream strategy that demonstrates that reality.

Peter
Click to expand...

I think they must have plans ready for contingencies but to disclose them as you have advocated would possibly disclose too much to their adversaries. The bottom line for me as a customer is the system I bought works as promised and they continue to support it.
 
Some news about to drop? Saw this on the Appellate Court website:

04/26/2012 Notice to reporter to prepare transcript. Csr's Musgrave, Lessa, Martin, Kaiser filed 4/26/12
 
Hmmmm...I just sent a batch of DVDs to K this week for the loan program and got this email reply:

"Please be advised that we are transitioning to a new system for our loan program as we enter the summer. This batch will be processed as usual, but if you have future discs to send in please contact us prior to packing your discs as we may need to set up a future appointment for receiving your content."

I hope that's not another way of saying "we won't be accepting DVDs soon."
 
PSU Lion said:
Hmmmm...I just sent a batch of DVDs to K this week for the loan program and got this email reply:

"Please be advised that we are transitioning to a new system for our loan program as we enter the summer. This batch will be processed as usual, but if you have future discs to send in please contact us prior to packing your discs as we may need to set up a future appointment for receiving your content."

I hope that's not another way of saying "we won't be accepting DVDs soon."
Click to expand...



No worries, it's not. There are more and more disks showing up lately that need to be worked by K. This is partly a result of the multiple manufacturing points now being used to create the DVD's.

As mentioned in other posts, even "if" DVD service is terminated in the future, current DVD capable systems will continue to receive the same support they currently receive.


Jim
 
That's a relief, thanks Jim. Truth is, I've been buying A LOT of DVDs since I got my system -- especially if they're older movies or children's cartoons that just don't make sense from a server/vault storage trade-off.
 
There are a lot of folks being more selective about what makes it into the BR vault collection. I restrict two categories to DVD only:

Thrillers that keep you interested until you know the answer (i.e. The Sixth Sense), and

Boy meets girl, girl hates boy, boy keeps trying, girl sees the value, and all is good.:)


Jim
 
At least more than half of the movies on my system are children's titles, most of which are animated. To me it just doesn't pay to buy those titles on Blu-ray (if they're even available). I seriously doubt my 5 year old would appreciate the difference between Toy Story 3 on Bly-ray ($19.99) versus the Dvd version ($8.99), and to tell you the truth I don't think I would either. Do they even make 'Leapfrog: Talking Words Factory' on Blu-ray?... No they don't. If I didn't already own a K-system and was just now considering buying one... If I knew that I couldn't import a standard DVD, that alone would cause me to look elsewhere for other alternatives.
 
bedbuged said:
.....................If I didn't already own a K-system and was just now considering buying one... If I knew that I couldn't import a standard DVD, that alone would cause me to look elsewhere for other alternatives.
Click to expand...


I'm sure there are other potential buyers that would feel the same way. BR collections are growing, but at an average double the cost of DVD, most of the collections are still relatively small.

Fortunately, all K systems currently being sold still import and support DVD.:)


Jim
 
Has anyone heard if the temporary stay has been granted??? I thought we would have heard by now.......

Peter
 
Last I checked (past Friday), the appeal is still pending, and at K it is still business as usual.:)


Jim
 
I see some updates to the case docket:

05/31/2012 Reporter's transcript filed. R-24
05/31/2012 Record in box. one

Anyone know what this means? What are these transcripts of?
 
Here's a random thought. If K loses the appeal, this essentially means that the DVD portion of our systems has been deemed illegal. Now, Kaleidescape specifically reminds us each and every time we do a DVD import that we must keep the DVD hanging around, not sell it, give it away, etc. But if K loses the appeal, this request will be moot. Simply by importing a DVD, we are doing something that isn't legal according to the DVDCCA contract Kaleidescape signed. At that point, should anything stop us from selling our entire DVD collections? Speaking for myself, they are taking up way too much physical space. If all Kaleidescape's customers dumped their DVDs onto the market, that would be many millions of DVDs.
 
If I were to do something like that, I wouldn't sell them on the second hand market. You won't make squat back by doing that and also it wouldn't really hurt the bottom line of the DVD sellers so much.

I would donate my collection to the local public library, which would help them and also probably be a tax deductible donation. I could likely claim the DVD to have a value of $9 and if I am in a 30% marginal tax rate my savings is $2.70, which I doubt I could get for most of my DVDs.

According to Hollywood math, every 12 year old kid that streams a low quality compressed video is one DVD/Blu-Ray of lost sales, so imagine how much they would lose for each time one of your DVDs is checked out. And unlike the 12 year old kid in the above hypothetical, the library is legally allowed to loan out those discs. Hollywood would not be able to shut that down without crushing the first sale doctrine and to attempt that would put them heads up against the entire home video industry - from the Blockbuster type chains to the Sony's of the world selling their home video players.
 
Wow, that makes a lot of sense. You would indeed make more money in tax deductions than you would on the open market. Thanks for the idea. If the DVDCCA prevails, that sounds like a great plan.
 
Except for 2 things.

1 - This is a contractual dispute betweek K and the DVD-CCA, so the legality of our use is not directly at stake (for better or worse.)
2 - You can only claim the lesser of cost basis or FMV when taking a charitable deduction. Make sure to check with your tax advisor first before trying the above (or anything else you may find on the internet.)
 
FMV can be what used DVDs sell for, not the pennies on the dollar the used DVD places offer for your titles.
 
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