Feeds

Netflix sues Blockbuster

Claims breach of business method patents

The Power of One Infographic

A patent infringement dispute has erupted between rival DVD rental services Netflix and Blockbuster over an alleged breach of Netflix business method patents by the older firm's internet arm, Blockbuster.com, according to reports.

In general, Netflix operates by allowing subscribing members to choose DVDs – the number allowed depends on the subscription plan chosen. These are then posted out to members for viewing and return.

The most popular plan costs $17.99 per month, for which members can rent as many DVDs as they like and keep them for as long as they want, but can only have three DVDs out at any one time. The firm does not charge for late returns.

Netflix has obtained two patents, one granted only on Tuesday, in order to protect its method of doing business. According to the BBC, the first patent covers the selection, delivery and return process, while the second relates to the no-late-fees policy and the way in which clients amend their movie lists.

The firm is now claiming that Blockbuster’s online service infringes upon these patents, and has filed suit in a San Francisco District Court. The action seeks damages and a court order to prohibit any further infringement.

Blockbuster has made no comment on the action so far.

Copyright © 2006, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Mobile application security vulnerability report

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.