Netflix sues Blockbuster

Mathew Everett 5 Apr, 2006 at 1:20pm ET Article published in Tech

Online movie-rental service Netflix has sued Blockbuster claiming its rival copied its way of doing business.

California-based Netflix has two patents protecting its business, which lets subscribers pay a monthly fee and then rent out DVDs via its website. It wants Blockbuster’s similar service halted and the court to award damages.

Source: Toms Hardware Guide

Comments

5 Apr 2006 ~ 2:03pm gibbonsl so competition is against the law now:(
5 Apr 2006 ~ 2:05pm madmat I doubt Netflix wins this one, Blockbuster is doing this in B&M stores not over the 'net.
5 Apr 2006 ~ 2:21pm CB That's what they were doing, but they recently introduced a new service that is *exactly* like Netflix with one exception: In addition to renting from the website, and having the movies delivered to you, they send you one coupon each month for a free rental from the store. Other than that their online rental bussiness is exactly the same right down to the pricing schedule ($9.99/mo for 2 movies ata time, $15.99/mo for 3 movies at a time, etc.).

If I was Netflix, I would be pretty pissed off. Whether or not they win the suit, however, comes down to what exactly was written into their copyrights.

It's competition when you offer a new version of a similar product as an alternative to existing products. Offering the exact same product for the exact same price is not competition, it's copyright infringement.

They might get away with it, though, because of that extra in-store rental.
7 Apr 2006 ~ 2:27am Mal51 What's next? Wal-Mart sues Target for buiding Super Targets? Give me a break. Netflix is just whining that they're not the only company providing this service. It's time to wake up and smell the capitalist coffee.
7 Apr 2006 ~ 3:48am Jengo well.. they do have a patent...