>>IIRC, they were warned about the fact that the second prize was revealing too much information, but went forward with it anyways.

I did not know that. That changes my opinion about Netflix acting in "good faith".

The argument I was making is rooted in my belief that in order to have a healthy environment for business enterprise, your legal system cannot be setup to punish innovation whenever something doesnt go as planned. There needs to be balance, i.e. for medical innovation the bar is higher than for movie ratings.