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This is a settlement for the Trademark, Copyright, Patent lawsuit.

New York, NY: (Mar-17-08) Dotcast Inc., a company that engineers and provides digital broadcast technologies, brought a patent infringement lawsuit against Movie Gallery Inc., challenging the validity of Movie Gallery's license. Kent, WA-based Dotcast claimed that MovieBeam, a movies-on-demand service offered by Movie Gallery, which it no longer operates, infringed upon a communications technology patent that Dotcast holds. A unit of Movie Gallery filed its own lawsuit in a California court to argue that it held a valid license to operate MovieBeam.

Records stated that both lawsuits were temporarily halted when Movie Gallery filed for Chapter 11 bankruptcy protection in October 2007. Following that, in December 2007, Movie Gallery announced that it would shut down the MovieBeam service as part of its restructuring. About 1,800 customers subscribed to the service, which required them to purchase a television set-top box that allowed them to order films for between $1.99 and $4.99. Movie Gallery acquired the service from the Walt Disney Co. in March 2007 for about $10 million.

As part of a settlement reached in the case, Dotcast Inc. will withdraw its patent infringement lawsuit against Movie Gallery Inc., and agreed to not file any claims against the company in the future. The deal stipulated that both companies withdraw their respective lawsuits and for Movie Gallery to reject the license it says it holds. The settlement also requires Movie Gallery to turn over certain software and equipment related to the MovieBeam service. Dotcast agreed to pay Movie Gallery $12,000 to cover the costs of gathering and delivering these goods [CNN MONEY: MOVIE GALLERY SETTLES PATENT DISPUTE]


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Published on Mar-18-08


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