U.S. Federal Circuit Court of Appeals Favors Movielink in Video-on-Demand Patent Infringement Suit

Business Wire, June 15, 2006

SANTA MONICA, Calif. -- Movielink (www.movielink.com), the leading broadband video-on-demand (VOD) service, announced today that the United States Court of Appeals for the Federal Circuit has affirmed the district court's judgment of noninfringement for Movielink, LLC in USA Video Technology Corporation's patent infringement lawsuit against the company.

The three judge panel of Chief Judge Michel, Senior Circuit Judge Plager and Circuit Judge Bryson made its ruling on June 7, 2006, just one day after oral arguments were presented by attorneys representing Movielink and USA Video. The Federal Circuit Court upheld the decision originally made in January 2005 by Federal District Court Judge Kent A. Jordan that Movielink's online movie distribution service did not infringe on USA Video's patent, a claim originally filed against Movielink in April 2003. Movielink was represented in the case by Jeffrey M. Olson of Sidley Austin LLP in Los Angeles.

"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 Peter W. Sheil, Executive Vice President and General Counsel, Movielink. "With this victory at the Court of Appeals, we are glad to put this case behind us once and for all."

About Movielink

Movielink (www.movielink.com) is an online movie download service offering U.S. broadband customers an extensive selection of recently released films and classic movies covering every genre, from action, comedy, drama, family and romance to sci-fi, horror and thrillers. The service is owned and operated by Movielink, LLC, a joint venture of Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros. Movielink content offerings are drawn from the current releases and vast libraries of those studios as well as from those of Walt Disney Pictures, 20th Century Fox and leading independent studios.