
By: Bob Barr, 2008 Libertarian Presidential Candidate
The great industrialist Henry J. Kaiser, father of the famous Liberty Ship that helped win World War II, understood the concept of progress. He knew that no matter how hard one might try to hold it back, ultimately the force of progress will prevail. As he put it – “You can’t sit on the lid of progress. If you do, you will be blown to pieces.”
Major Hollywood studios are sitting on that pressure cooker right now, hoping mightily to avoid the fate Kaiser predicted will eventually befall obstructionists. However, Hollywood does have one ally it hopes will be a game-changer and permit it to cheat the march of progress: the courts.
In two recent legal cases – one federal, one state – judges sided with the studios in dealing body blows to two innovative technology companies trying to market products allowing consumers to more easily and conveniently view their DVDs. The mere fact that these two companies – Kaleidescape and RealNetworks – would have the audacity to develop and market such products, was sufficient to incur Hollywood’s wrath and cause it to unleash its army of lawyers against them.
In a single week in mid-August, two rulings breathed new life into the relentless and longstanding drive by the major studios and their surrogates to thwart technology innovators from marketing devices that expand viewing options for DVD consumers.
The first of these anti-innovation body blows was delivered against a software technology company – RealNetworks – by a federal court in San Francisco. This company since last year had been trying to market a product called RealDVD, which Hollywood truly seems to hate. Why the hatred? Because RealDVD allows a consumer to copy a DVD onto the hard drive of their computer. This then permits the consumer to view their movies from a computer directly, without having to cart around and load a DVD into the unit every time they want to watch a movie. This simple and logical process is premised on the one principle Hollywood apparently will spend whatever it takes to defeat – the idea that purchasers of DVDs have the right to watch them under whatever circumstances they wish.
Recently, RealNetworks indicated it will appeal.
The second judicial body blow took place a day after the RealDVD decision, and was rendered by a California appeals court against another technology company – Kaleidescape, which manufactures a high-end home entertainment system that allows consumers to use a central server to deliver movies to players anywhere in their house. Kaleidescape actually had won its case – brought indirectly by the studios by an industry group, DVD Copy Control Association – in a California trial court, but lost the next round.
In neither of these instances do the products permit the consumer to “rip” or illicitly copy DVDs – so-called “pirating.” However, the RealDVD software and the Kaleidescape hardware do allow the consumer to “copy” a DVD into their own computer or entertainment system for their own viewing ease.
In the long run, however, it may very well turn out that the studios’ short-term gain will be their long-term loss. Hollywood’s drive to squelch consumer-driven DVD products will never halt the march of that technology; but it will push consumer to do what imaginative consumers have always done, to find other ways to increase the choices available to them. This is especially easy in today’s fast-moving world of Internet-driven technology.
Particularly at a time when DVD sales are dropping, it makes little sense for the movie studios to accelerate that process by fighting rather than working with companies that are ready, willing and able to give consumers what they want. But, Hollywood continues to try and hold back the tide. Consumers are fortunate there are entrepreneurial companies willing to battle on their behalf.
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