Kaleidescape and DVD Copy Control Association (DVD CCA) have reached a settlement agreement that will result in the end of long-standing litigation over Kaleidescape's use of the Content Scramble System (CSS). In 2012, DVDCCA has brought a lawsuit against Kaleidescape, seeking to preserve the integrity of the CSS license agreement's anti-copying mandate. The trial court had ruled that Kaleidescape's DVD playback device known as the Kaleidescape System breached the CSS License because it used CSS to make permanent copies of DVD content, which could then be played back without any need for the actual DVD.

On May 19, 2014, at Kaleidescape's request, the California Sixth District Court of Appeal dismissed Kaleidescape's appeal of a California trial court's 2012 judgment.

Following return of the case to that trial court, Judge William Monahan on June 2, 2014 granted the joint request of DVD CCA and Kaleidescape to put into effect the injunction previously issued by that court to prohibit Kaleidescape from using CSS in breach of the CSS License Agreement. The injunction was made effective as of November 30, 2014, and modified to give the trial court jurisdiction to enforce the terms of the settlement agreement.

The remaining terms of the settlement agreement between DVD CCA and Kaleidescape were not disclosed.