Movielink Faces Patent Suit

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Movielink, the online video-on-demand service powered by five major film
studios, is in hot legal water after a subsidiary of USA Video Interactive Corp.
filed suit, charging that the service violated its patent covering Internet film
distribution.

In a case industry watchers said could impact the VOD market, USA Video
Technology is claiming that Movielink stepped on its patent, which sets up a
system for distribution of digitized video programs to Internet users for
storage and viewing.

The Mystic Conn.-based unit, which provides Internet media-delivery services
and systems, filed the suit Thursday in U.S. District Court's Delaware district.
It is seeking a jury trial, a permanent injunction and triple damages.

Movielink is run by a coalition including Viacom Inc.'s Paramount Pictures,
AOL Time Warner Inc.'s Warner Bros., Metro-Goldwyn-Mayer Inc., Sony Corp.'s Sony
Pictures Entertainment and Vivendi Universal's Universal Pictures.

It launched in November, offering users downloadable movies for as long as
30-day rentals ranging from $1.99 to $4.99.

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