March 12, 2008
Did DivX close Stage6 to duck copyright litigation?
News.com reports that DivX, parent company of defunct video-sharing site Stage6 on Tuesday disclosed how it came to the decision to shutter the service rather than to sell.
"Potential copyright litigation" was one of management's top considerations leading up to the shuttering of Stage6, Dan Halvorson, DivX's chief financial officer, said during a conference call to announce the public company's fourth-quarter earnings.
There was reason for concern. Turns out DivX, a maker of Internet-video technologies, had lost a bid to avoid fighting costly copyright suits just a few weeks before Stage6 was closed, records show."
Initially, the company said "that the continued operation of Stage6 was a very expensive enterprise that requires an enormous amount of attention and resources that we are not in a position to continue to provide."
[via NewTeeVee]
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