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 (http://www.out-law.com/)

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

Related stories

Blockbuster and Netflix stop suing each other (28 June 2007)
http://www.theregister.co.uk/2007/06/28/blockbuster_v-netflix_patent_settlement/
Blockbuster says Game Over on Game Station UK (2 May 2007)
http://www.channelregister.co.uk/2007/05/02/blockbuster_sells_gamestation/
Slow road to online film service at an end for Netflix (19 January 2007)
http://www.theregister.co.uk/2007/01/19/netflix_online_film_service/
Netflix puts the Net into Flix (16 January 2007)
http://www.theregister.co.uk/2007/01/16/netflix_movies_on_pcs/
Sainsbury's cans DVD rentals (9 August 2006)
http://www.theregister.co.uk/2006/08/09/sainsburys_dvd_dies/
Blockbuster escalates row over online rental patent (19 June 2006)
http://www.theregister.co.uk/2006/06/19/blockbuster_row_escalates/
Euro lobbyists demand end of levies on blank media (6 April 2006)
http://www.reghardware.co.uk/2006/04/06/call_to_end_copyright_levies/
Netflix hits pause on movie download plan (20 October 2005)
http://www.theregister.co.uk/2005/10/20/netflix_downloads/
Software patents: the fight in Europe (22 December 2004)
http://www.theregister.co.uk/2004/12/22/patent_roundup/
Netflix delays UK launch (15 October 2004)
http://www.theregister.co.uk/2004/10/15/netflix_delays_uk_launch/
Netflix, TiVo sign VoD alliance (1 October 2004)
http://www.theregister.co.uk/2004/10/01/netflix_tivo_deal/
TiVo and Netflix 'team for movie downloads' (7 September 2004)
http://www.theregister.co.uk/2004/09/07/tivo_netflix_vod_tieup/
Online dating firm patents cupid's arrow (28 May 2004)
http://www.theregister.co.uk/2004/05/28/patent_dating/
European Council snubs software patent vote (11 May 2004)
http://www.theregister.co.uk/2004/05/11/eu_software_patent_law/
No US patent for the patently obvious (9 March 2004)
http://www.theregister.co.uk/2004/03/09/no_us_patent/