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Analyzing the Recent Verizon-Netflix Business Dispute Under Florida’s Unfair Business Practices Law

Ahhhhh…the weekend is here. It’s time to relax and watch your favorite Netflix show. Uh-oh. Why is it taking forever to download? What are all those little dots?

“The Verizon Network is crowded right now.
Adjusting video for smoother playback…”

Smart tv and hand pressing remote controlA few hundred thousand customers of Verizon and other internet service providers (ISP) recently saw this error message while experiencing slow downloads and grainy picture quality as they were trying to watch videos on Netflix. Worried that the message would tarnish its otherwise sparkling reputation, Verizon sent a message of its own to Netflix in an indignant cease-and-desist letter dated June 5, 2014.

Verizon demanded that Netflix take down the message, calling it a deceptive and unfair business practice. Verizon wanted proof that the diminished service was solely Verizon’s fault, as well as a list of Verizon customers who were shown the message. Failure to provide this information, Verizon warned, could lead to legal action. Unaffected by the threat, Netflix stated on June 9, 2014, that the error message had been sent to customers of Verizon and other ISPs as part of a test that would continue until June 16, 2014.

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Protect Yourself with a Joint Venture Agreement

two businessmen having discussion in office“You’ve got the brains…I’ve got the connections and money…Let’s make lots of money!”  That’s the spirit of a joint venture–two or more entrepreneurs pooling their expertise and capital to profit from a business opportunity.  And if everyone has agreed to split the profits equally, what else is there to do except get to work?  Just one thing─draft a written joint venture agreement (JVA) with the help of a business lawyer.

An extremely large number of joint ventures end in a legal battle usually because the parties didn’t take the time to anticipate potential problems at the beginning and to account for such issues in a written JVA.

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