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Netflix Sues Blockbuster for Patent Infringement

StrongGlad writes "Is the concept of renting movies over the Internet an original idea that deserves patent protection? Netflix claims it is, and is suing Blockbuster for patent infringement, alleging they are copying its seven-year-old online movie-rental business method. Netflix argues that it has patents covering its many online features, including allowing subscribers to keep DVDs for as long as they want without incurring a late fee, obtaining new DVDs upon return of those already watched, and prioritizing their own personal movie list. Blockbuster, for its part, has counterclaimed, insisting that Netflix is trying to monopolize the online movie-rental industry and stifle competition. Blockbuster also alleges that Netflix obtained its patents fraudulently by failing to disclose pertinent information to the U.S. Patent and Trademark Office, and further contends there is nothing original about renting videos online in the first place."

7 of 268 comments (clear)

  1. Re:Business models? by Apocalypse111 · · Score: 5, Funny

    [to ask] Microsoft. They might [to know]. They seem [to patent] everything anyways.

    --
    There is no mod option "-1: Disagree" for a reason. "Overrated" is not an acceptable substitute. Post something instead.
  2. In other news by rolfwind · · Score: 5, Funny

    SCO is suing Netflix for stealing its business method....

  3. Ben Franklin said it best... by sugapablo · · Score: 5, Interesting

    In his autobiography, he recounts that he was offered a patent on a new
    kind of stove he invented that was a tremendous improvement in terms of
    heating a building and in reducing the amount of wood needed.

    He declined this patent, stating that from "Principle which has ever
    weigh'd with me on such Occasions, viz."...

    "That as we enjoy great Advantages from the Inventions of others, we
    should be glad of an Opportunity to serve others by any Invention of
    ours, and this we should do freely and generously."

    But screw that, right?

  4. Re:Business models? by no_pets · · Score: 5, Informative
    --
    "A government is a body of people, usually notably ungoverned." - Shepard Book Quoting Malcolm Reynolds
  5. Re:Business models? by jo_ham · · Score: 5, Informative

    I think you missed the point of the joke. This was an obvious nod to the (erronously summarised) story earlier this week about MS patenting verb conjugation, adding more fuel to the "patent obvious stuff: profit" model that has been emerging over the past few decades.

  6. It's not new by wbean · · Score: 5, Informative

    When I lived in London in the 50's Harrods had a lending library. You paid a monthly fee and they assigned a librarian to you. He/she (mostly she) picked out books for you - or you could request specific titles. The books were delivered in Harrods green electric vans. When you'd finished a book Harrods would pick it up and ship you another one. Sound like a familiar business model? It even involved technology (the electric vans).

    (I've posted this information before, but it seems to bear repeating.)

  7. Re:Busted, but maybe not... by Deadstick · · Score: 5, Interesting

    They certainly developed a silver bullet of a model. I had an interesting experience recently: dropped a fistful of mail into the box at the Post Office, then came to the sickly realization that I had put neither postage nor return-address stamps on. The postmistress sent a helpful clerk -- yes, I said helpful P.O. clerk -- to open the box and stand watch while I rooted out my envelopes.

    That bin was almost a sea of red. Netflix envelopes by the TON. I commented on that, and the clerk said yes, the P.O. was proud of the special handling deal they have.

    Netflix is now the fifth largest user of first-class mail. At the cities where they have processing centers a Netflix truck drops a load of outbound envelopes bagged by ZIP code and pre-sorted down to carrier route, and picks up the incoming directly off the dock.

    rj