Feeds

Netflix sues Blockbuster

Claims breach of business method patents

Boost IT visibility and business value

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.

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
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
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
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.