Netflix Sues Blockbuster Video for Online Movie Rentals
In early April 2006, Netflix filed suit against Blockbuster video for patent infringement, claiming Blockbuster video is copying Netflix's business method of renting movies online.
In particular, Netflix claims that Blockbuster is violating its patents on the business method of "queues" or online wish lists, as well as its patent on the business practice of renting a DVD for an unlimited time without late fees.
Netflix obtained patenst for its online movie rental concept in 2003 and in 2006, but Blockbuster has claimed in a counter-suit filed in June that Netflix obtained the patents fraudulently by not disclosing complete information in its patent application.
Judge William Alsup of the U.S. District Court of Northern California has denied Netflix's motion to end Blockbuster's counter-suit and has ruled that the two cases should be tried together.
The case is being watched closely by intellectual property lawyers as it could affect millions of consumers who currently rent movies from other companies, as it would effectively give Netflix a monopoly on the online movie rental business.
See: National Law Journal: No Happy Ending for for Net Movie Renters
