As we've explained before, a number of Hollywood movie studios have been on the war path against Redbox, the kiosk-based DVD rental operation, because Redbox offers DVD new releases for rent at 99 cents per night. Thanks to the first sale doctrine in copyright law, Redbox's business is completely legal—the company buys legitimate DVDs to stock their kiosks. Great for consumers, and a great alternative for those who might otherwise opt for an unauthorized alternative online.

But Hollywood wasn't pleased, and took a number of steps to interfere with Redbox's business, which in turn led to lawsuits. Earlier this week, Redbox and Warner Brothers settled their litigation, with Redbox promising not to offer Warner DVDs until 28 days after the DVD goes on sale. In other words, no more Warner new releases in the Redbox kiosks. Analysts predict this will be a blueprint for similar settlements with other Hollywood studios.

The Media Wonk has published a great recap of what happened, detailing how the movie studios put pressure on distributors and retailers and ultimately succeeded in subverting the first sale doctrine: