Movielink wins patent VOD suit

Plaintiff USA Video will investigate other online VOD offerings

By Jennifer Netherby -- Video Business, 6/15/2006

JUNE 15 | Internet movie service Movielink won another round last week in a patent infringement lawsuit filed against it by Connecticut-based USA Video Technology Corp. when the U.S. Court of Appeals for the Federal District upheld a lower court ruling.

USA Video sued Movielink in April 2003, charging that the studio-backed movie service infringed on USA’s 1992 video-on-demand patent for storing and forwarding movies on the Internet (VB, 4-11-03).

A three-judge panel of the appeals court upheld a February 2005 district court ruling that Movielink didn’t infringe on the patent. 

“We were confident that Movielink did not infringe USA Video’s patent and are very pleased the District Court, and now the Court of Appeals, agreed with us,” said Movielink executive VP and general counsel Peter W. Sheil. “With this victory at the Court of Appeals, we are glad to put this case behind us once and for all.”

USA Video noted that the ruling didn’t invalidate its patent and said other companies that offer VOD online could be violating those patents.

“We are all disappointed by the decision of the appeals court,” USVO president Edwin Molina said. “However we will continue to consider other potential infringements and enforce our patent rights.”