1. 1. Kaleidescape systems will not be able to import DVD discs. There are currently 4,400 KStore DVD titles available.
   Article John Sciacca June 5,2014 "What Kaleidescape’s DVD CCA Lawsuit Settlement Means to Dealers" – Read article
   "As I read the release, following November 29, Kaleidescape systems will still play back DVDs – either via a single disc-in-tray or when stored in a vault – but discs will not be imported, correct?
   Cheena Srinivasan, CEO, Kaleidescape: "Correct. However, it will still be possible to import DVDs that are not protected by CSS [such as home videos], just as we do today".
2. 2. Kaleidescape will only import around 60K worldwide Blu-rays or a fraction of the total 275K+ worldwide DVD/Blu-rays
   Article January 9th, 2012: "How Many Movies Are There?" Read Article
   "As of today [Jan. 9, 2012], the Internet Movie Database records 268,246 features (that’s counting from 1888 to 2017—it includes films that are only in production)."
   This site has an index of DVDs and Blu-rays that lists a total of 265,112 movies as of August 1, 2014. View Site
   IMDB Stats: These stats suggests that there will be over 1 million movie titles not including the almost 2 million TV episodes to be released by 2021: A vast majority will be DVD titles that Kaleidescape will no longer be able to import. View Site
   It is estimated that approximately 60,000 total Blu-ray titles have been released worldwide to date. View Site
   Conclusion: Kaleidescape will only be able to import 60K Blu-rays or a fraction of the total 275K worldwide movies.
   Conclusion: Of the estimated 1M movies and 2M TV episodes BDs and DVDs released by 2021, Kaleidescape will not be able to import or play an estimated 2.5 million DVDs.
3. 3. "iTunes offers over 37 million songs, 700,000 apps, 190,000 TV episodes and 45,000 films as of September 12, 2012" View Site
   -iTunes is in 147 Countries. "The Affiliate (iTunes store) Program is now supporting 147 countries on one easy to use platform" View Site
   
4. 4. Kaleidescapes KStore currently has less than 6,000 titles many are TV shows, including 4,400 DVDs and less than 1,400 Blu-rays.
   "Currently there are roughly 4,400 DVD quality titles available from the Kaleidescape store." Read Article
   Mozaex: "Currently as of August 1st, 2014 there are less than 1,400 Blu-ray titles on the KStore in which many if not a majority are TV show Titles."
   Conclusion: The Mozaex supported iTunes store has around 250,000 more Movie/TV Titles and available in 144 more Countries than KStore

• Kaleidescape will NOT be able to STORE DVDs.
• Kaleidescape will continue to REQUIRE an antiquated "Blu-ray disc-changer" to play loaded Blu-ray movies.
• Kaleidescape will ONLY support Blu-rays and KStore* movies or less than 75K of the 275K total movies in production worldwide
• Kaleidescape’s online KStore reportedly offers around 6,000 titles (4,400 DVDs plus est. 1,600 Blu-rays) in 3 Countries (USA, Canada, UK)
  -In comparison Mozaex’s supported iTunes online store offers around 250,000 titles (50K Movies + 200K TV episodes) in 147 Countries.

• Mozaex system design has been reaffirmed to be legal by both the RealDVD and Kaleidescape cases.
• Mozaex continues to ship its award winning Server without requiring a disc-changer.
• Mozaex offers a superior product that can play stored DVD’s and Blu-ray movies in multiple rooms.
• Mozaex offers many unique valuable features that Kaleidescape does not offer including:
  • Blu-ray HD 3D Movies
  • Instant Streaming VUDU, NetFlix Movies
  • High Quality Downloaded iTunes Movies
  • High Quality Home Videos and Photo Slide Shows
  • 200 Plus Channels of Online Media

The Kaleidescape lawsuit is specifically a contractual licensing dispute between the DVDCCA and Kaleidescape.

Mozaex is not negatively affected by this ruling since Mozaex does not have a contract with the DVDCCA or other decryption software company and thus is not subject to any possible contractual violation.

Mozaex does not ship with the DVDCCA related software or any other unlicensed decryption software. Mozaex only ships with a licensed, commercially available movie physical disc player software that includes licensed decryption software.

We believe that the court ruling was in addition to the RealDVD case another positive affirmation that Mozaex and its products are legal to make, sell, resell and service.

In addition we appreciate that the court expressed the following opinion of the DMCA which we believe affirms our position that our product is legal because Mozaex is NOT involved in the "trafficking in and marketing of [decryption] devices":

"A reading of the DMCA makes it clear that its prohibition applies to the trafficking in and marketing of devices that would circumvent encryption technology, not to the users of such technology. (See 32,1 Studios, supra, 307 F.Supp,2d at p. 1097.)"

Mozaex and their products are legal since Mozaex does not make, sell or provide any unlicensed decryption software.

The company only ships with commercially available, fully licensed decryption movie player software.

Mozaex has always and will continue to adhere to all laws including but not limited to the DMCA regarding movie copyrights.

Mozaex does not require or "induce" anyone to buy, install or use encryption software since the product may be used to play many forms of media without the use of decryption software.

Like a personal computer, Mozaex is a multi-purpose computer that can be used to play many forms of both protected ("encrypted") and unprotected ("unencrypted") media without decryption software.

Mozaex Media Supported Without the Use of Decryption Software

• Supported Protected Media Examples - Physical movie discs such as DVD and Blu-ray discs and pay-per-view streaming or downloaded movies from sites like iTunes, NetFlix and VUDU.
• Supported Unprotected Media Examples - Unprotected movie DVD discs, home videos, music, photos and over two hundred channels of online media including video services such as YouTube.

Disclaimer: Because the questions surrounding the movie copyright laws can be complex, confusing and evolving we feel that it is important that both dealers and end users are provided with the most up-to-date, unbiased, factual information with the intent of helping you make the most educated decisions in complying with copyright laws. We are not offering any opinion on the illegality of making, selling, providing or in any way illegally using decryption software. We encourage you to seek your own legal counsel to answer any legal questions you may have.

Statements Made on Kaleidescape’s Web Site That We Don’t Agree With

From Kaleidescape’s web site. Refer to: kaleidescape.com What about "DVD/Blu-ray Media Servers"?

We believe that the following Kaleidescape web site statements do not correctly represent Mozaex LLC, the Mozaex product or the current state of the copyright laws in the United States:

1. Kaleidescape Statement

"We have been informed that the manufacturers of various unlicensed "DVD/Blu-ray Media Servers" advise their dealers and customers that "if you want to load media that is protected you likely will need to install additional decryption software" in order to play or copy such discs."

Mozaex Clarification

Mozaex Correction

Mozaex DOES ship with fully licensed decryption software to play movie discs therefore you DO NOT "need to install additional decryption software" to "play … such discs"

2. Kaleidescape Statement

"It is our understanding that the use of such unlicensed software to break the copy protection on discs is generally illegal in the USA and could constitute a violation of the Digital Millennium Copyright Act (the "DMCA")."

"Based on its current knowledge, Kaleidescape believes that the installation of these "DVD/Blu-ray Media Servers", including obtaining the third-party software to get them working as advertised, would result in dealers and/or their customers in the USA committing criminal acts and risking heavy fines or jail time."

Mozaex Correction

Mozaex does not agree with these statements. Based on two recent court cases, namely the RealDVD and the Kaleidescape cases, Mozaex believes that these two statements are misleading and misrepresent the courts understanding of the DMCA as it relates to the USE OF DECRYPTION SOFTWARE . On the contrary it is our position that these two cases AFFIRMED that the DMCA DOES NOT PROHIBIT "OBTAINING" OR "USE" of decryption software for LEGAL PURPOSES per this quote from the recent Kaleidescape permanent injunction ruling:

"A reading of the DMCA makes it clear that its prohibition applies to the trafficking in and marketing of devices that would circumvent encryption technology, not to the users of such technology. (See 32,1 Studios, supra, 307 F.Supp,2d at p. 1097.)"

Highlighting Note: the underlined emphasis above was added for clarity purposes in the reprinting of these statements and quotations.

Dealers

1. Do Not Sell any Unlicensed Decryption Software – As discussed in the section above it is illegal to SELL decryption software. Only the End User is allowed to purchase and use decryption software for legal purposes.
2. Do Not Illegally Use any Unlicensed Decryption Software - Do not for example, copy "non-owned" movies including but limited to rentals or borrowed movies onto a media server for yourself or an End User. Do not assist an End User in illegally copying non-owned movies onto a media server. This may also be referred to as "contributory infringement".
3. Optionally Have End User Sign A Hold Harmless Agreement - We believe that since our products are legal and our Sales Terms and Conditions includes an indemnification clause it is not required to have additional indemnification agreements signed by the End User.
   
   However If you believe that you need additional legal protection against losses caused by the End User’s illegal use of the media server you should consider having the End User sign a Hold Harmless Agreement (HHA) similar to the one that is included with the Mozaex Dealer Sales Terms and Conditions Agreement.

End Users

1. Do Not Illegally Use any Unlicensed Decryption Software - Do not for example, copy "non-owned" movies including but limited to rentals or borrowed movies, onto a media server for yourself or an End User.

• WE BELIEVE IT IS LEGAL TO PURCHASE OR USE DECRYPTION SOFTWARE FOR LEGAL USES
  
  We agree with the legal experts opinions referenced in the articles below, that "copying DVD’s for personal use "may well be" lawful under the Fair Use Doctrine of the Copyright Act" (Click link to learn more).
  
  "A reading of the DMCA makes it clear that its prohibition applies to the trafficking in and marketing of devices that would circumvent encryption technology, not to the users of such technology. (See 32,1 Studios, supra, 307 F.Supp,2d at p. 1097.)"
• IT IS LEGAL TO MAKE, SELL AND SUPPORT A MEDIA SERVER WITHOUT DECRYPTION SOFTWARE.
  
  As it is with the 100 million Personal Computers shipped with Media Center type software and other movie playback software a media server that does not include any unlicensed decryption software is also NOT illegal to make, sell or support.
• IT IS NOT LEGAL - TO MAKE, SELL OR PROVIDE DECRYPTION SOFTWARE
  
  Based on the Digital Millennium Copyright Act (DMCA) it is illegal to make, sell or provide [ie: give away] decryption software. However, the DMCA does not prohibit the purchase and legal use of decryption software.

There have been numerous articles on this subject including the ones referenced below. It is also recommended that you contact your own legal counsel regarding any questions that you might have concerning this subject.

• Wired article: "But the decision, although mixed, left open the door that copying DVD’s for personal use "may well be" lawful under the fair use doctrine of the Copyright Act, although trafficking in such goods was illegal."
• Wired article: "However, she stopped short of sanctioning personal use copies, and gave a conflicting message on whether it was legal." "So while it may well be fair use for an individual consumer to store a backup copy of a personally owned DVD on that individual’s computer, a federal law has nonetheless made it illegal to manufacture or traffic in a device or tool that permits a consumer to make such copies," [Judge] Patel said.
• Wired article: "The law is deeply unclear. The reality, as far as I know, nobody has ever been sued for making a personal use DVD or CD," said Fred von Lohmann, an Electronic Frontier Foundation attorney.

Links to specific articles on Copyright laws:

• Click here to read the Wired article entitled "Judge Rules DVD-Copying Software Is Illegal"
• Click here to read the Wired article entitled "Hollywood Control of DVD-Copying at Crossroads"

For additional information contact your Mozaex Project Manager by clicking here