At least one startup's doing just fine vs. Blackboard. Instructure Canvas just closed series B, is CEO'd by former Mozy founder and is LMS of choice for a growing number of schools (and soon to be @ Auburn if twitter's to be believed).
They avoid litigation (apparently) by open-sourcing their stack and charging for hosting/integration. Rails-based goodness.
[not affiliated - but was just identifying LMS options for a client]
They avoid litigation (apparently) by open-sourcing their stack and charging for hosting/integration. Rails-based goodness.
[not affiliated - but was just identifying LMS options for a client]