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Commercial Law Keyed to Whaley
In re Toshiba America HD DVD Marketing and Sales Practices Litigation
Citation:
2009 WL 2940081Facts
Toshiba introduced its HD DVD player for consumption in the United States in April 2006, marketing it as the “next generation” format for the encoding and playback of audio-visual entertainment, such as movies. This product faced fierce competition from the Blu-ray Disc, a product largely developed and supported by the Sony Corporation (“Sony”). The two companies competed for market share with the various large movie studios, with Sony securing 70% of the market share by the end of 2007. Despite Sony capturing significantly more market share, Toshiba continued to advertise its product as the future of the DVD format, specifically that its product would play “Today, Tomorrow, and Beyond.” In February 2008, Toshiba announced it was stopping production of its HD DVD players. Plaintiffs sued, alleging that Toshiba had violated express warranties because it knew its product would not last on the market but continued to represent otherwise in its advertising.
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