Who thought the DVD business could be so dramatic? First off, we’ve had probably the worst week imaginable for the DVD copy-crowd, as both Real Networks and Kaleidescape got knocked around in court. The California Court of Appeals negated the biggest victory the fair use community had notched so far, overturning Kaleidescape’s 2007 victory allowing it to sell media servers that enabled the copying of DVDs. Also this week, a U.S. district court judge said Real’s DVD copying software violated U.S. copyright law, issuing a preliminary injunction against the sale of the product. Turning to the channel, Blockbuster’s earnings showed the rental king on a continued downward spiral, as revenue dropped 22%, while Warner Brothers took a hardline against Redbox, implementing a 28 day delay beyond the start of the DVD window for kiosk rentals (I smell yet another Redbox lawsuit) .  Clearly a busy week for the physical format, as the continued shrinking of the beloved DVD cash-cow has studios on the warpath.