Dallas - Video rental giant Blockbuster said on Thursday that it has settled patent litigation with online DVD rentals rival Netflix.

Terms of the settlement were not disclosed.

Netflix sued Blockbuster last year for infringing two of its patents; Blockbuster responded with a counterclaim that alleged Netflix was in violation of antitrust laws.

Blockbuster also announced plans to shutter 282 of its U.S. rental store locations, and spend more to build its online rental service.

Meanwhile, Netflix on Thursday lowered the fee for its $14.99 per month plan by $1, matching a similar price cut Blockbuster made for its plan that offers two DVDs out at a time.

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http://biz.yahoo.com/ap/070627/blockbuster_netflix_settlement.html (AP)

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