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Netflix Suing Blockbuster for Patent Infringement

grouchomarxist writes "Netflix is suing Blockbuster for Patent Infringement. From the article: 'Netflix holds two U.S. patents for its business methodology, which calls for subscribers to pay a monthly fee to select and rent DVDs from the company's Web site and to maintain a list of titles telling Netflix in which order to ship the films, according to the patents, which were included as exhibits in the lawsuit. The first patent, granted in 2003, covers the method by which Netflix customers select and receive a certain number of movies at a time, and return them for more titles. The second patent, issued on Tuesday, "covers a method for subscription-based online rental that allows subscribers to keep the DVDs they rent for as long as they wish without incurring any late fees, to obtain new DVDs without incurring additional charges and to prioritize and reprioritize their own personal dynamic queue -- of DVDs to be rented," the lawsuit said.'"

74 of 410 comments (clear)

  1. Worried! by Anne+Thwacks · · Score: 4, Funny
    Does this also cover my shopping list at Asda (Walmart)?

    I am really worried. Any minute now, someone will patent going to work by bus. (Including SCSI and VME)

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    1. Re:Worried! by dodobh · · Score: 2, Funny

      Nah, we will patent going to work over the Internet.

      --
      I can throw myself at the ground, and miss.
    2. Re:Worried! by Eccles · · Score: 5, Funny

      I'm in the process of patenting my invention, I call it "money".

      *Looks in wallet*

      Well, I'm not infringing...

      --
      Ooh, a sarcasm detector. Oh, that's a real useful invention.
    3. Re:Worried! by Eccles · · Score: 2, Funny

      Now I'm going to go and patent using your wallet to hold air. Its a win/win baby!

      I don't think so. I have waaaay too much prior art.

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      Ooh, a sarcasm detector. Oh, that's a real useful invention.
    4. Re:Worried! by GuyverDH · · Score: 2, Insightful

      If you are really upset about the methods being used by litigious patent-pushers, stop using their products / services.

      #1 - Caldera SCO - very easy to stop using - no products or services worth using IMNSHO.
      #2 - Amazon - a little tougher, but not terribly so.
      #3 - NetFlix - never used it, and now, never will.

      --
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    5. Re:Worried! by Bill+Hayden · · Score: 2, Funny
      #3 - NetFlix - never used it, and now, never will.
      I'm one up on you there. I use it almost every month, but never pay for it. I just sign up for a new one-month trial each time the previous trial expires. So they're paying me to watch their movies.
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  2. Patents on business methods are stupid. by tpgp · · Score: 5, Insightful
    TFA:
    "Blockbuster has been willfully and deliberately copying Netflix's business methods," Netflix spokesman Steve Swasey said.
    So what if they're copying your business methods - thats called competition.
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    1. Re:Patents on business methods are stupid. by Mecdemort · · Score: 5, Insightful
      It has long been said that: Imitation is the highest form of flattery.

      In the past copying products in a different form was alowd. You couldn't patten chicken noodle soup, but you could pattent a specific formula. This form of patenting ideas is going to strangle us as a civilization, and lead to a few companies that control everything.

      Just wait until someone patents a pure idea, and if anyone gets caught thinking about it you have to pay them.

    2. Re:Patents on business methods are stupid. by hackstraw · · Score: 4, Informative

      So what if they're copying your business methods - thats called competition.

      Nobody that uses patents as their business model wants competition. Just ask Tom Woolston.

      Hint. He's a patent attorney, who loves to be his own customer.

    3. Re:Patents on business methods are stupid. by Respawner · · Score: 3, Informative

      Actually we don't have to wait,there was a story about a lawsuit like this. A federal circuit court held that mere thinking violates the patent, it was about a patented fact. http://yro.slashdot.org/article.pl?sid=06/03/19/18 16207 http://www.nytimes.com/2006/03/19/opinion/19cricht on.html?ex=1300424400&en=9addb806498d2739&ei=5088& partner=rssnyt&emc=rss

    4. Re:Patents on business methods are stupid. by jzfredricks · · Score: 2, Funny

      It has long been said that: Imitation is the highest form of flattery. In the past copying products in a different form was alowd. You couldn't patten chicken noodle soup, but you could pattent a specific formula. This form of ideas is going to strangle us as a civilization, and lead to a few companies that control everything.


      looks like you'll be able to paytent your novel ways of spelling patent!

  3. a sad time by tont0r · · Score: 5, Funny

    next 7-11 will sue circle K because they both run the same business.

    1. Re:a sad time by QuantumPion · · Score: 5, Funny

      1) Patent "the process of exchanging goods or services for finiancial reimbursement"

      2) Sue the entire world, muahahahaha

      3) Profit!

    2. Re:a sad time by chrismcdirty · · Score: 2, Funny

      You can sue the entire country. You can only threaten to sue the entire world. The rest of the world will laugh at you because they don't have such retarded patent systems as the US.

      --
      It's like sex, except I'm having it!
  4. Broken beyond repair by CRCulver · · Score: 4, Interesting

    The first patent, granted in 2003, covers the method by which Netflix customers select and receive a certain number of movies at a time, and return them for more titles.

    So a common-sense business method is patentable? The U.S. patent system really is broken, I'd encourage all to read Jaffe & Lerner's Innovation and Its Discontents to see just how broken it is. Personally, I think there's no hope of repair, and innovation would progress better were the entire system thrown out. But patents are seen as such a triumph of early American government, with founding fathers like Jefferson in favor of them. Plus, our legislature is currently enslaved to monetary interests. So, we're stuck in quite a pickle where nothing can really be done.

    1. Re:Broken beyond repair by mtenhagen · · Score: 4, Funny

      Just wait until someone tries to change the patent system. I bet all patent systems are patented already.

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    2. Re:Broken beyond repair by Cheap+Imitation · · Score: 4, Insightful

      How's that for ironic? A comment protesting the patent of common-sense business methods, and a request to read about it by giving us a referral link to Amazon, of all places... Now that's funny stuff!

    3. Re:Broken beyond repair by ktappe · · Score: 2, Informative
      patents are seen as such a triumph of early American government, with founding fathers like Jefferson in favor of them.
      Not exactly. In their day, the founding fathers only supported individual persons being granted patents. Corporations were not treated as individuals until the late 1870's and thus could not hold patents until that time. So what Jefferson & co. supported was a much more common-sense approach to patents--that they be granted to the individual for actual physical inventions. It was the treatment of corporations as legal entities that really opened this can of worms we're into now.

      -Kurt

      --
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    4. Re:Broken beyond repair by LunaticTippy · · Score: 2, Informative

      My library allows me to check out 10 DVDs at a time. I can place holds online for as many DVDs as I want, but I only get 10 at a time. They have had this system since the 90s.

      --
      Man, you really need that seminar!
    5. Re:Broken beyond repair by volsung · · Score: 2, Informative
      That's formally the rule, but patents still get issued, since the patent examiners do not have enough time to carefully evaluate every patent. It also doesn't help that the job of the patent writer is to torture English to its breaking point while describing their invention.

      See the end of this section for links to recent perpetual motion machine patents.

  5. Aside from patentability by PornMaster · · Score: 3, Insightful

    Aside from whether or not business methods should be patentable... since they were granted the patent, it's pretty obvious that they had come up with a novel process which was straight-up copied. On the legal merits, they should certainly win.

    1. Re:Aside from patentability by Pofy · · Score: 5, Insightful

      >Aside from whether or not business methods should be patentable... since
      >they were granted the patent, it's pretty obvious that they had come up with
      >a novel process which was straight-up copied.

      Please tell what part of it that is novel and non obvious (to people in THAT area)? In addition, it should be something that no one has done before 2003 (or even later since that was the first patent).

    2. Re:Aside from patentability by SamuraiMike · · Score: 2, Informative

      That is certainly a reasonable expectation.

      The problem is that the patent office has pretty much stated that they don't really spend much time these days researching whether a given idea is patentable, and instead let the courts sort it all out. In that context, this is really about challenging the validity of the patent.

    3. Re:Aside from patentability by smelroy · · Score: 2, Insightful

      Sure it is obvious now... thanks to Netflix pioneering it seven years ago (getting a patent takes a while). Although I don't have much respect for the US patent system, I have to wonder how else would Netflix protect their novel business model from a competitor like Blockbuster? BB has several major advantages already: a huge, existing inventory of movies and actual stores. How can Netflix compete with that without protecting their novel business model?

      I subscribe to Blockbuster now because of the fact that I get 2 free rentals every month from a store in addition to the all I can watch by mail. That allows me to go rent something on a whim. Those 2 free rentals in the store would cost me almost over half as much as the monthly subscription does already. Netflix can not compete on that level without partnering with some other competing retail rental chain. What Netflix does have going for it is they came up with this new idea for unlimited online rentals for a set monthly fee. Shouldn't they be able to protect that in some way?

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    4. Re:Aside from patentability by FrostyWheaton · · Score: 4, Insightful
      Shouldn't they be able to protect that in some way?

      Sure, they can protect it the same way McDonald's, CarMax, Wal-Mart and others have protected their place. To my knowledge neither of these three (or of dozens of other premier companies with 'novel business models' has needed the USPTO to help retain their place of prominence. Being first to market is a huge advantage and that alone will sustain the fellow who 'thought of that first' in many cases.

      TANSTAAFL, especially in the business world. Just because I come up with the novel concept of providing a subscription CD service (totally different from DVDs which appears to be what is patented), over the internet, with sprinkles gives me no more claim to royalties than the fellow who figured out that people were dumb enough to pay $1.50 for a bottle of water.

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    5. Re:Aside from patentability by multiOSfreak · · Score: 4, Insightful
      Although I don't have much respect for the US patent system, I have to wonder how else would Netflix protect their novel business model from a competitor like Blockbuster? BB has several major advantages already: a huge, existing inventory of movies and actual stores. How can Netflix compete with that without protecting their novel business model?

      Maybe Netflix could protect its business model by...I don't know...offering the best service/product in the market? If they are the best (in the view of the public), it won't matter how their competitors model their businesses to compete.Netflix is more or less asking the courts for special protection against market competition. I don't think *that* is a very good business model, but then again, I don't run a multi-million-dollar corporation.

      I subscribe to Blockbuster now because of the fact that I get 2 free rentals every month from a store in addition to the all I can watch by mail. ... Netflix can not compete on that level without partnering with some other competing retail rental chain.

      If you're so worried about Netflix's business, why don't you support them instead of Blockbuster? And as for Netflix not being able to compete "at that level," well, that's tough shit. They entered a national video rental market, and the have to find a way to compete "at that level."
  6. Utter, utter BS by stunt_penguin · · Score: 5, Insightful

    OK so what if I go out and patent queueing at a shop checkout to pay for goods, or paying for magazines to be delivered to your home on a monthly basis, or, or........

    This shit has to stop, I mean netflix are just being totally petty about the whole damn thing. I mean, what *other* way is there to organise online DVD rental? Are they going to enforce patents on their *whole* business model.

    This has to stop. Gah!

    --
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  7. What a disappointing post, BadAnalogyGuy by hunterx11 · · Score: 2, Funny

    One hand washes the other, but your post is more like both hands waving apprehensively in the air because you weren't sure which one to wave but now you realize that waving both looks stupid but you've already committed to your decision and don't want to look like you did it on accident.

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    English is easier said than done.
  8. Library patents by doddi · · Score: 5, Insightful

    The first patent, granted in 2003, covers the method by which Netflix customers select and receive a certain number of movies at a time, and return them for more titles.

    Isn't this exactly how libraries have worked since ...um, long before 2003?

    1. Re:Library patents by montyzooooma · · Score: 3, Informative

      No, because this is ONLINE. Throw "on the internet" in there and you can patent pretty much any existing business practice. Other magic phrases are "on a handheld device" or "on a games console".

    2. Re:Library patents by Comboman · · Score: 4, Insightful
      No, because this is ONLINE

      Been to a library lately? My local library has been online since before 2003 http://catalogue.halifaxpubliclibraries.ca/ and allows you to add books, CDs and yes DVDs to your personal list, informs you when they are available for pick-up at your local branch, and when you return them they send you the next ones on your list when they're available. Sounds like 'prior art' to me, the only real difference is that the library isn't charging a monthly fee.

      --
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  9. Simple solution. by RandoX · · Score: 4, Interesting

    Blockbuster should charge $.01 per year late fees. No longer the same as the patent.

    1. Re:Simple solution. by stunt_penguin · · Score: 2, Interesting

      Actually, that's a really good idea, and gets around part of the problem. Maybe they can then introduce a customer bonus system that means they get their late fees back if they rent more than 5 movies in a year, thereby making the whole thing null and void for all customers.

      --
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    2. Re:Simple solution. by Aneurysm9 · · Score: 2, Interesting

      Then you run into the doctrine of equivalents. Even if one device or method does not correspond 1:1 to the claims in the patent, infringement may be found if the device or method is sufficiently equivalent.

      --
      There was Cowboy Neal at the wheel of a bus to never-ever land.
  10. Netflix sues Blockbuster, Users Sue Netflix by digitaldc · · Score: 2, Insightful

    First of all, Blockbuster sucks, they 'settled' their class action lawsuit for overcharging for late fees by offering about 3-4 free rentals as payment. That is unfair. They made millions from these late fees and then when they were found to be scamming, they just offered some free rentals, big deal...we never saw that late-fee money again.

    Netflix needs to stop staggering movies for frequent-renters. Just because someone can take full advantage of their 'all-you-can-rent' policy, doesn't mean they should be penalized for it. Netflix already gains from those who don't return their movies regularly, so why should they care if some rent and watch a new movie every day? Just charge more per month or get rid of the policy.

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  11. Anyone wanting to discuss this intelligently ... by Throtex · · Score: 5, Informative

    ... should probably take the time to read the patents in controversy assigned to Netflix first.

    They are:
    US Patent No. 6,966,484 to Calonje, et al.; and
    US Patent No. 7,024,381 to Hastings, et al.

    As you do so, look at the claim language, not the specification, to find out what the invention actually covers. Discuss.

  12. Before you jump on the "Patents are bad" bandwagon by defwu · · Score: 4, Insightful

    Yes, "common-sense" business models are patentable. Why? Because "common-sense" is not as common as you would think.
    As for the "patents are bad for innovation" argument : if you come up with a way to manufacture widgets that no one else has before, and that innovation has cost you a certain amount in development costs, should you not have the right to protect that investment? If your competition can just steal your methods, then you would have no incentive to innovate.
    I am not saying that there isn't a line here, or that the the line hasn't been jumped over by the US. patent office, but by and large patents do in fact encourge business investment into research that would otherwise not happen.

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  13. The Double Click (and other stupid patents) by BoredWolf · · Score: 2, Interesting

    Last time I checked, patenting was only for "new and innovative" methodologies and products. What I read in the article is neither. It is common sense to give people the products they want in the order they want them, and to give repeat customers a flat-rate on rentals. I suppose Netflix should look elsewhere for their innovations. They could try pantenting their screw over your customers business methodology...

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  14. My beer shopping patent by ip_freely_2000 · · Score: 3, Funny

    A method in which I look in the fridge on a regular basis and realize it is empty. I then get in the car and drive to the beer store to replenish my supply of beer.

    You all owe me.

  15. patent throttling by maryjanecapri · · Score: 3, Insightful

    Do you think Netflix is going to also patent their wonderful method of throttling their better customers? I just signed up for Blockbuster after watching my netflix shipping come to a slow grinding halt. I am actually LUCKY if I get my three movies at a time in a single week now. So I wanted to check out Blockbuster to see how they fared. Now they are getting sued by Netflix. Boy is that irony? Of course this will never go through - if it does, imagine the precident it will set. KMart will go after Walmart (for their methodology of having consumers in lines to pay for goods). Converse will go after Adidas (for their methodology of creating goods to go on someone's feet). I just hope like hell Blockbuster isn't also sued for slowing down the shipping of movies. I do believe Netflix has the corner on that market!

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  16. I hold the Uber-Patent! by Dekortage · · Score: 2, Funny

    I hereby announce that I hold a patent on suing others for infringing on dubious patents. If you hold a patent of dubious nature, and you sue someone else over it, you owe me royalties.

    And if you sue me over my patent, you still owe me royalties.

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  17. Re:Score another one... by varmittang · · Score: 3, Funny

    Nope, I got that patent already. And if you want to make a bowel movement, I got that one too. So pay up.

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  18. Blockbuster: sue the USPTO by Anonymous Coward · · Score: 4, Interesting

    Blockbuster, if you're listening, you need to lay hard into the US Patent Office and sue them for incompetently issuing bogus patents that will cost you huge penalties in legal fees and possible settlement costs.

    The advantage of vigorously pursuing full-scale litigation against the patent office is that most of the research for your legal team will be done free of charge. There is a huge community who are already aware of the problem with the USPTO and can point to at least hundreds of similar bogus patents that have or may in the future cause significant financial loss to other companies.

  19. Re:Before you jump on the "Patents are bad" bandwa by Mostly+Monkey · · Score: 2, Insightful

    One problem is that often someone will patent an idea without further developing it. They will sit on it until another company does all the footwork to make the idea feasible and then sue them. Unless the other company takes the risk the patent won't benefit anyone.

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  20. Intelliflix by szembek · · Score: 4, Interesting

    I use these guys: http://www.intelliflix.com/. It's cheap. Anyways, they too are copying Netflix, must be that they're not big enough to get sued for it yet. Estupido.

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    nothing
  21. Re:Anyone wanting to discuss this intelligently .. by Valdrax · · Score: 4, Interesting

    There's a difference between patenting inventions (i.e. what the system was designed for) and patenting commercial actions and methods of organization, which is what business model patents are. Business model patents do NOT promote the Sciences and Arts. They merely ensure a monopoly without encouraging innovation.

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  22. common sense by backwardMechanic · · Score: 2, Insightful

    Yes but common sense refers to the time the patent application is filed. I agree that lots of ideas are obvious after someone has had them. That is why you file the patent, and then tell the world about it. But if your idea was obvious before you suggested it, that's common sense and isn't (and shouldn't be) protected. If all obvious ideas could be patented, it becomes a race to file patents, and innovation naver gets a look in. Which appears to be how the US patent office functions.

  23. My friend at Netflix by leather_helmet · · Score: 5, Interesting

    My good friend who has been working at netflix for approximately 5 years says that most of the employees think the lawsuit issue with blockbuster is a waste of time

    Blockbuster has been getting their asses kicked in regards to marketshare vs. netflix for about the last year or so
    When blockbuster initially tried to compete with Nflix, the Nflix folks were a bit scared, including my buddy who was worried about the future of the company he helped develop - however, after Nflix's somewhat recent resurgence & increased user subscription, which in turn boosted the stock prices from all time lows, blockbuster has become a non-issue to Nflix (well at least to my buddy and most of the staff)
    --

    1. Re:My friend at Netflix by lucifig · · Score: 2, Insightful

      "Blockbuster has been getting their asses kicked in regards to marketshare vs. netflix for about the last year or so"

      Of course you are going to get your ass kicked entering a market that a sole company dominated for 3-4 years. Just because your buddy can't see 5 years into the future doesn't mean the company execs cannot. I'm not saying that Blockbuster is going to run over Netflix in 5 years or ever...but they sure as heck can see the Amazon monster coming over the horizon into their market and have to dig their trenches now.

      As much as I disagree with method patents, Netflix has little choice but to try to defend this now while they have the market leverage/capital to do so.

    2. Re:My friend at Netflix by scribblej · · Score: 3, Funny

      When blockbuster initially tried to compete with Nflix, the Nflix folks were a bit scared, including my buddy who was worried about the future of the company he helped develop - however, after Nflix's somewhat recent resurgence & increased user subscription, which in turn boosted the stock prices from all time lows, blockbuster has become a non-issue to Nflix (well at least to my buddy and most of the staff)

      You got something against E.T.?

      Eeeeeliiiiooooot...

  24. Patents *are* bad by chaves · · Score: 2, Insightful
    "If your competition can just steal your methods, then you would have no incentive to innovate"

    We don't need incentive to innovate, innovation is in the inner essence of the human race. Problems need to be solved, and someone will solve them first. There are many benefits of being an inventor or pioneer. And innovation is good for business as well, as it gives you a lead over the competition (no need to tie people down). There are ways you can prevent others from just stealing your work, such as copyrights, and trade secrets. That does not apply to business methods (you can still take credit for creating it, which can be good marketing). Here what matters is that you need to execute well and provide the better value for your customers.

  25. Just add internet by bhalter80 · · Score: 2, Insightful

    It seems that as soon as you add the words internet or software people just lose any sence they had. If you asked someone if you could patent having cash registers at the front of the store instead of having someone follow you around charging you as you take things off the shelf they would tell you there is no way you could patent that. But now if you have some software in a virtual store that computes your bill once you've finished selecting which items you want that's patentable. This country really needs to come to terms with the technology it has invented and realize how few differences there are between this new tech and the business methodology from the brick and mortar establishments it is based on.

  26. Reduce term for business method patents by ewg · · Score: 2, Insightful

    Business method patents would be more palatable if the term of protection weren't so long, especially when the web is involved. Seventeen-year legal monopolies just don't fit a twelve-year-old medium.

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  27. Re:Before you jump on the "Patents are bad" bandwa by orzetto · · Score: 5, Interesting
    [if] that innovation has cost you a certain amount in development costs, should you not have the right to protect that investment?

    I believe not at all. Rights are granted for the benefit of the whole of society, not single individuals: otherwise you might as well reintroduce slavery, as it was very beneficial to a few guys. Having a monopoly on something that can be reproduced indefinitely such as business or programming methods, and knowledge in general, means unfairly harming everybody else. You are not damaged by someone else who's using your methods (this does not block you from using them), unless you mean by competition, and last time I checked there is quite a load of legislation that actually protects competition, as it is demonstrated to improve product quality for society.

    If your competition can just steal your methods, [...]

    You cannot steal a method or an idea. You can only copy it. The original author still has it.

    ... then you would have no incentive to innovate.

    On the contrary, if you know that the competition is going to figure out your methods and implement them after a while, you know also that you must keep innovating and leveraging your position as first in the market (it takes time to make a Webshop from just an idea: and if you are slow and competition is faster than you to commercialise, it's all your fault). In other words, you have to do actual work, not rest on your laurels because some law forbid everybody else from using your methods.

    From the whole society's point of view (that is, our point of view), if Netflix wins we are going to see worse service from Blockbuster and less competition. If Blockbuster wins, competition will be closer between the companies and they will have to find a way to get more customers.

    The more I think of the patent system the more I think that the whole concept is flawed. As generally with IP, Beethoven and Mozart died in poverty, Britney Spears is filthy rich.

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  28. business methods wildly counterproductive... by rootrot · · Score: 2, Insightful

    to all but lawyers (confession: I am a recovering lawyer). Under the current approach, Coca-Cola's greatest error was not New Coke, it was not patenting the "containing of a carbonated fluid in a variable sized vessel..." Take that Pepsi, et al. Henry Ford should clearly have nailed down the whole "four wheeled, motorized vehicle" thing and avoided all these annoying "also rans."

    Personally, I think a company should live or die on thier ability to innovate and, more importantly, provide value and support to their client base...not their ability to litigate. YMMV.

  29. Time limits are the issue here I think? by ami-in-hamburg · · Score: 4, Insightful

    Well, at the time, NetFlix was new and innovative with their business model. Therefore, the patents were reasonable at the time. Just because something seems obvious now doesn't mean that it has always been obvious.

    IMHO, a time limit is needed for business model patents. I won't argue here how long they should be valid, just that they should have a reasonable expiration date. That way, the innovative company can cash in on their research and development for the time limit of their patent while still allowing competition in the market.

    Naturally, companies (and I assume politicians as well) won't like the idea of time limited business model patents but I think that is what would be best for the consumer.

  30. Re:Before you jump on the "Patents are bad" bandwa by grizzlo · · Score: 2, Interesting

    As for the "patents are bad for innovation" argument : if you come up with a way to manufacture widgets that no one else has before, and that innovation has cost you a certain amount in development costs, should you not have the right to protect that investment?

    If a company comes up with a new way to manufacture widgets -- a new widget-making machine, for instance -- and you're talking about a competitor stealing the construction plans for the machine, then I think this is a different situation, and far less objectionable.

    But when we're talking about business process innovation -- finding new ways to store inventory, or manage relationships with vendors and customers, or hire and retain employees, or deliver goods and services -- then I think the argument is less clear. Presumably you do these things simply to derive a competitive advantage, and the additional profits you expect to earn are incentive enough.

    It used to be that the PTO wouldn't grant patents for business methods, because they saw them as abstract ideas -- this all changed with the State Street case.

  31. PRIOR ART in 1700s "Subscription Library" by Tsu+Dho+Nimh · · Score: 4, Interesting
    PRIOR ART! Netflix has patented the old mail-based "Subscription Library" model. In the USA, they were founded by Ben Franklin, who later went on to run the USPTO after the Revolution. Here's how the subscription libraries worked:

    In-town, one could stroll to the lending library (or send one's maid or footman) to return a book and pick up the next one on the list. It was a social occasion as well as a literary one. Subscription price varied depending on how many books you wanted to have in your posession at a time.

    Out of town patrons paid a subscription fee (higher to cover the cost of shipping) that depended on how many books they wanted to posess at a time (a few, up to dozens of them if you were going to India), handed over or mailed in their list and waited for the postman to deliver the books. When they were finished with the book/s, they sent it/them back and got the next batch on the list that was in stock.

  32. Re:Mod parent up by egburr · · Score: 3, Interesting
    Netflix may have been the first to offer "all you want for a single monthly fee" for DVDs, but they aren't the first to have an "all you want for a single monthly fee" offer. Check out the local bus line at any large city. Check out downtown parking lots at any large city.

    Come to think of it, almost any restaurant or fast food store offers "all you can drink until you leave for a single fee". Many sports teams offer a season pass, which is "all the local games you can attend this season for a single fee".

    How does applying this concept to DVD rentals make it unique?

    --

    Edward Burr
    Having a smoking section in a restaurant is like having a peeing section in a swimming pool.
  33. blockbuster by douglasamcintyre · · Score: 2, Informative

    I make a case for a Blockbuster bankruptcy here. The Netflix thing just makes it worse. http://www.worldoftech.blogspot.com/

  34. Re:Before you jump on the "Patents are bad" bandwa by CharonIDRONES · · Score: 2, Insightful

    So what you're saying is ways to improve business, the assembly line pioneered by Henry Ford for automobiles should be patentable?

    While it was an amazing idea, and helped bring automobiles into the grasp of the average man, doesn't mean it should be exclusive to that company. A company discovers a new model that works, what should prohibit another company from taking up that model instead of going under? Bookstore than failing can't sell their books online because Amazon patented the 'innovation' of selling books online? Sorry, I thought capitalism was supposed to spur innovation not suffocate it.

    -Brandon

  35. Re:Before you jump on the "Patents are bad" bandwa by LainTouko · · Score: 2, Insightful
    As for the "patents are bad for innovation" argument : if you come up with a way to manufacture widgets that no one else has before, and that innovation has cost you a certain amount in development costs, should you not have the right to protect that investment?

    You do have the right to protect that investment in any case. Nobody is proposing prohibiting the protection of investments. What you're talking about is stripping other people of the right to use an idea.

    If your competition can just steal your methods,

    Eh? Is anyone proposing that stealing methods, which would necessarily entail forcibly erasing your knowledge of those methods from your mind, should be explicitly legal or something?

    Why do you patent authoritarians have such trouble describing things honestly? Is it because your arguments are so incredibly weak that they wouldn't survive if people understood what they really are?

    then you would have no incentive to innovate.

    Yeah, because no innovation ever happened at any point in history before patent systems were established.

    I am not saying that there isn't a line here, or that the the line hasn't been jumped over by the US. patent office, but by and large patents do in fact encourge business investment into research that would otherwise not happen.

    Your evidence of this? And remember, we are talking about removing people's freedom. You need really strong and convincing evidence of a huge, unambiguously beneficial end effect to propose such a thing. And certainly everything I've seen suggests precisely the opposite, it just ends up with a load of power being wielded by the already powerful few, and makes innovation far more difficult for the majority of less powerful people and companies, whilst creating artificial monopolies which remove much of the incentive to innovate from the monopoly-holder.

  36. While patenting by the_Bionic_lemming · · Score: 5, Insightful

    Did they also include a patent for slowing shipping down because you rent too many movies from them?

    After all, Unlimited isn't really unlimited with netflix.

    I'm leaving netflix To go to blockbuster - I guess people like me defecting is what really prompted the lawsuit. Instead of living up to the "Unlimited Rentals" they are going to sue everyone else out of existance.

    --
    _ _ _ Go for the eyes Boo! GO FOR THE EYES!
  37. Re:Score another one... by pNutz · · Score: 2, Funny

    And if you want to make a bowel movement, I got that one too. So pay up.

    I owe you quite a back log.

    --
    Death and danger are my various breads and various butters.
  38. Re:Before you jump on the "Patents are bad" bandwa by s!mon · · Score: 2, Insightful


    I believe not at all. Rights are granted for the benefit of the whole of society, not single individuals: otherwise you might as well reintroduce slavery, as it was very beneficial to a few guys. Having a monopoly on something that can be reproduced indefinitely such as business or programming methods, and knowledge in general, means unfairly harming everybody else. You are not damaged by someone else who's using your methods (this does not block you from using them), unless you mean by competition, and last time I checked there is quite a load of legislation that actually protects competition, as it is demonstrated to improve product quality for society.


    Its easy to suggest solutions to problems you don't understand. Patents are for the general public because they are vested to the public after a term of years. Otherwise, the idea might have never been released. This is the tradeoff, you disclose your novel idea to the public, and you get a limited monopoly on the idea. Its not unreasonable at all, especially if you spend hundreds of millions of dollars developing the idea.

    Just imagine how cheap Coca-Cola would be if they patented the formula in 1920.

    You cannot steal a method or an idea. You can only copy it. The original author still has it.

    What about modify it? Improve it? Remove steps that are unimportant? Use it on a different subject matter? Apply it in different way?

    From the whole society's point of view (that is, our point of view), if Netflix wins we are going to see worse service from Blockbuster and less competition.

    But society appreciates ingenuity and creativity. There is going to be a design-around for the patent, you just have to use your wits to figure it out. And when its figured out, how much competition will there be?

    This is typical slashdot flamebait. A lot of accusations and no intelligent discourse. I think business method patents are absurd too, but the whole anti-patent attitude lacks any true discussion on the merits of the patent system. Maybe from your software-developing perspective patents are absurd, but have you ever thought outside of the box and realized that its a good for other industries?

  39. Re:Before you jump on the "Patents are bad" bandwa by ryanjensen · · Score: 2, Interesting
    Rights are granted for the benefit of the whole of society, not single individuals: otherwise you might as well reintroduce slavery, as it was very beneficial to a few guys.

    Are you insane? All rights are granted to individuals only, never to "society". In your example, for instance, the South benefited greatly as a society from institutionalized slavery - not just "a few guys". I'm not here to say slavery is right (in fact it is very wrong), but that granting rights to "society" means granting rights to the majority. In that case, whatever the majority (or "society") finds desirable is correct. If society decrees that slavery is beneficial, under your model of rights, then slavery is allowed.

    Under the individual rights model, as the US is founded on, each individual citizen is granted all the rights of every other citizen. You have the right to be free from being enslaved, I have the right to be free from being enslaved, Bob has ... get the picture?

    You are not damaged by someone else who's using your methods (this does not block you from using them), unless you mean by competition, and last time I checked there is quite a load of legislation that actually protects competition, as it is demonstrated to improve product quality for society.

    Pretend for a moment that you've been slaving (hehe) away in your basement to create a new method for conducting business that is vastly superior to the well-established companies already in the market. You create a new company to compete with these multi-billion dollar per year corporations, and with your business method you have the potential to blow them away. However, without a patent on your new method, all the established companies copy you immediately.

    Not only did you not benefit from your hard work, you basically did all your competitors a favor by giving it away for free. You worked for nothing. What's the point in doing it again next time you have a good idea? You tell your story to a few friends, who tell it to a few more friends, and all of a sudden no one wants to innovate.

    Allowing a patent on your business method gives your startup company a fighting chance to establish itself in the marketplace. The limited term of patents (currently 20 years) means that eventually, yes, all your competitors will be able to use the same business method that made you so fantastically successful. Know what that means? Time to innovate again.

    Also, for the other companies that cannot use your business method, they must innovate new and even more improved business methods to compete with *you* now - they can't just use your idea and stop there.

    I wish you damn socialists would just stop complaining that other people have better opportunities and luck than you because they came up with something people want and you didn't. Show me something you've invented or created and shared with the whole world gratis - what's that? You can't? Oh.

  40. Is throttling part of that patent? by graffix_jones · · Score: 2, Insightful

    I wonder if throttling is part of that business method that is patented.

    That would actually make it 'novel' and potentially patentable... I mean, who actually would think of a system of Unlimited rentals that was in fact Limited depending on whether or not the customer actually tried to use the service as if it were unlimited.

    Who here can show prior art where the word Unlimited actually means Limited.

    That actually sounds pretty novel to me.

    /me wipes the sarcasm off his lips...

  41. Don't stand for this. by far_star · · Score: 2, Interesting

    Don't stand for this. I am a Netflix customer and here is my email to them.

    Netflix,

    I cannot express with enough emphasis my disappointment with your decision to sue Blockbuster because they had the audacity to compete with you. I have been a Netflix member for several years and while I find your service superior to Blockbusters (which I canceled after 2 weeks) I do have something it appears you do not believe to be common among your subscribers. That thing is a conscience.

    If you continue to pursue this shameful attempt to intimidate future startups from trying to compete I guarantee you that I will cancel my account. We Internet users, which constitute a large part of your subscriber base, actually follow these events with keen interest and typically find this practice of yours reprehensible. Patenting a business model, while successful on your part, is seen by many as an abuse of the system.

    I ask you, on behalf of many of your subscribers, to end this, UN-American attempt to eliminate competition through dodgy manipulations of our legal and patent system.

    --
    In an average living room there are 1,242 objects Vin Diesel could use to kill you, including the room itself.
  42. Once upon a time ... by sirrobert · · Score: 2, Insightful
    (Disclaimer: This may sound like a slur against lawyers, but it isn't. Look past the apparent cynicism (which isn't there) and see the interesting idea.)

    During a class in which we were discussing the Constitution, U.S. Law, and landmark Supreme Court cases, one student voiced some confusion about why the lawyers in some particular case -- one that was patently absurd to common sense and plain reading of the Constitution and laws in question -- would even take the case, since it didn't at all seem to pursue Justice.

    The professor, who was also a litigation attorney, interrupted the student before he finished speaking and said, "Don't think for a moment that it is about Justice. That's naive. Legislation may be about Justice, but litigation -- for the lawyer -- is an industry by which they earn their money to buy a house and car, and to buy things they like. Lawyers working for Justice work for non-profits."

    He went on to compare lawyers to cobblers -- they make shoes that sell, not that are perfect for the foot. The better the cobbler is, they more they will be able to achieve Just ends as an aside while they're performing their craft of forging a fine lawsuit for their customers -- if they care about that at all.

    There are very few people in any field who perform their functions primarily out of idealism. It is as likely that you'll find a lawyer who is seeking first and foremost to forward Justice as that you'll find an IT guy who is ideologically attached to his specific employer's technological well being. More likely, it's a way for him to earn money utilizing some (fairly) specialized skill to pursue his real interests (gaming, golf, whatever).

    As a final note, it does seem to me that there are certain fields that are more likely to generate idealogically motivated workers. Most of them become most apparent (as my professor said) in the pro bono arena (because it becomes obvious that the person isn't working for money). I should also point out that a fair number of lawyers may become lawyers for ideological reasons, but may also be willing to take cases that are lucrative even if not towards their certain ideological end.

  43. What is a GOOD patent anyway ? by billcopc · · Score: 2, Insightful

    It seems so obvious that patents like this only serve as legal ammunition to attack competitors. To most of us, the concept of patenting "Doing X over the internet" is ridiculous, but why is it so ? Does anyone have an example of a patent that has actually benefitted the world at large ?

    From what I've seen, patents serve to "protect" the intellectual property, but really how can you own an idea ? You can invent something and be the first to market, but to use the legal system to keep everyone else out of the game is just plain retarded. If someone's business model is so fragile that they must protect their ideas with patents, then in my book they deserve to suffer everything we throw at them. If they can't stand up to the competition on level ground then they should die and let the stronger entity take their place.

    --
    -Billco, Fnarg.com
  44. Re:I hereby claim the patent! by rk · · Score: 2, Funny

    Y'know, I really get tired of this right-wing bashing of Al Gore. Of course he didn't invent pants, but he was instrumental in getting funding for the original ARPANTS which is what our modern high-speed pants derived from. So, while he of course doesn't know the technical underpinnings of interfacing, serging, hemming, and button-holing needed to make pants, he can, in some sense, take credit for our modern pants.

  45. It's About Incentives by tabdelgawad · · Score: 2, Insightful

    "To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries" - Article I, Section 8, US Constitution.

    The reason for granting time-limited exclusivity (patents, copyrights) is not that innovators have a right to protect an investment, as the GP says. The reason is that without time-limited exclusivity, there would be a lot less incentive for innovators to innovate in the first place. This is especially true for innovations that require a substantial investment of time and money.

    To the extent that certain innovations do not require this investment, they are less deserving of exclusivity. Society as a whole gains when a drug company finds it worth its while to spend a billion dollars to develop a new drug that they can patent and sell above cost for a limited time (until generics enter). But society loses (from lack of competition as you point out) from patenting innovations of the "wouldn't it be cool if ..." variety, the type you can 'innovate' in a single evening while having a beer with your buddies.

    --
    Imposing Libertarian views on everyone online since 1992.
  46. HOW CAN YOU PATENT *NOT* DOING SOMETHING? by autopr0n · · Score: 2, Interesting

    They have a patent for not charging latefees. WTF? That's the most insane thing I've ever heard. I'm going to patent cars that don't use internal combustion engines or batteries and then sue everyone when they try to make a fuel cell car, or any car that uses another technology that hasn't been invented.

    Brilliant.

    Although, since I'm not charging late fees right now I suppose I'm violating netflix patent.

    --
    autopr0n is like, down and stuff.
  47. patent: Dual-textured cookie products.... by Fubari · · Score: 2, Informative
    Right, not patentable :-)
    This looks like a recipe to me...

    Now, with a more desireable mouth melt! mmmmm :-)

    Yeah, 1987 is old, but I wanted a cookie example unrelated to "non-obvious inventions" about persisting web-browser session state.

    United States Patent: 4,664,921
    Seiden, May 12, 1987

    "Dual-textured cookie products containing narrow melting range shortenings"

    BACKGROUND OF THE INVENTION "Traditionally, fresh homebaked cookes have exhibited a slightly crisp outer surface texture and a chewy, more ductile interior, while commercially prepared cookies have exhibited only a single texture, in most cases relatively hard and crisp. A recent development in the cookie industry is a storage-stable, crumb continuous dual texture cookie which closely approximates homemade yet does not deteriorate when stored in a warehouse or on a store shelf for reasonable periods of time.

    Abstract "This invention comprises crumb-continuous cookie products having distributed therein discrete regions of storage-stable crisp texture and discrete regions of storage-stable chewy texture in which the crisp regions contain a shortening having an SCl at 21.degree. C. of from about 14.0 to about 20.0 and an SCl at 33.degree. C. of from about 0.0 to about 8.0 and the chewy regions contain a shortening having an SCl at 21.degree. C. of from about 12.0 to about 18.0 and an SCl at 33.degree. C. of below about 2.0. The shortening system having these melting characteristics provides a more tender crumb texture, more desirable mouthmelt and dissipation and better flavor display in the cookie."

    Recipe Excerpt "The use of beta prime stable shortening for cookies, while not essential to the production of an acceptable cookie, is greatly preferred. If a shortening which is unstable in the beta prime form, for example, partially hydrogenated Canola oil, is used, the initially small beta prime crystals will gradually transform into large and higher melting agglomerates of beta crystals. The high melting large and grainy beta crystals detrimentally affect the taste and mouthmelt of the cookie. To produce cookies with good mouthmelt and dissipation and flavor display that will retain these characteristics under adverse storage conditions, it is greatly preferred that the solid glycerides present remain predominantly in the beta-prime form."