Things have been looking bleak for Kaleidescape's DVD servers since a Judge ruled against them on appeal, and earlier this month issued an injunction that was to have taken effect on April 8th. We say was because CEO Michael Malcolm is now saying the California 6th District Court of Appeal has issued a temporary stay of that injunction. The court is still deciding whether or not to stay the injunction during the entire process, a decision Malcolm says could affect whether or not the company survives or has to lay people off. While the current case does not affect Kaleidescape's tethered Blu-ray servers, it's tiring to hear about all this from the DVD CCA over a DRM scheme that was cracked wide open so long ago, and a case that had appeared to be over.

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