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June 28, 2007

Dark Passage

In April of last year Netflix sued Blockbuster for infringing its patents for user wish lists and "no late fees" features, leading to a bruising battle. In a surprise announcement, the two settled earlier this week, terms undisclosed; so hush-hush that the judge in the case washed his hands of it all, even if the settlement agreement falls apart.

Northern District of California Judge William Alsup signed a modified stipulation of dismissal with prejudice, but would "not acquiesce in the proviso that the court should retain jurisdiction" because Blockbuster and Netflix did not provide a copy of the settlement agreement. Alsup wanted the tar baby gone, regardless. "Even if the settlement agreement were provided, the court might or might not be willing to be a future referee for disputes arising out of the settlement agreement."

Blockbuster let slip to the SEC that the dispute resolved Monday, but was otherwise tight lipped.

Previous Patent Prospector coverage: June 14, 2006; August 25, 2006

Posted by Patent Hawk at June 28, 2007 1:00 AM | Litigation