Blockbuster Suit Dismissal Upheld

A federal appeals court upheld a ruling that Blockbuster Inc. didn’t try to drive independent retailers out of business by negotiating exclusive contracts with movie studios.

The U.S. 5th Circuit Court of Appeals in New Orleans affirmed a verdict issued last year by a San Antonio trial judge, Blockbuster said. Studios including Vivendi Universal’s Universal Home Video and Sony Corp.’s Columbia TriStar were also among the defendants.

Dallas-based Blockbuster’s 1997 agreement gave studios a share of rental revenue in exchange for a lower price on movies. The agreement covers only VHS tapes, which matter less to Blockbuster as DVD rentals surge. The retailers wanted the same deal Blockbuster gets from the movie studios, as well as financial damages.