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Netflix Files Patent Infringement Suit Against Blockbuster

by Glen Shapiro, LawAndTax-News.com, New York

06 April 2006

Online movie rental service, Netflix announced on Tuesday that it has filed suit against Blockbuster, alleging that the rival firm has infringed on two patents covering the process of online DVD rental.

In a suit filed in San Franciso this week, Netflix argued that Blockbuster had been aware of patents owned by Netflix, but had chosen to ignore them when developing its own, similar DVD rental service.

The first patent, granted in 2003, covers the method of selecting and receiving a number of DVD titles, and returning them in order to receive more from a personally-selected list.

The second, which was granted on Tuesday, covers the company's 'no late fees' approach, in addition to the ability "to obtain new DVDs without incurring additional charges and to prioritize and reprioritize their own personal dynamic queue".

Speaking to the LA Times with regard to the suit, Netflix spokesman Steve Swasey argued that:

"It seems obvious because Netflix has made it obvious. We've filed suit to protect our invention. Netflix has built a better mousetrap and Blockbuster copied it."

Netflix is reportedly seeking closure of Blockbuster's online DVD rental service, and unspecified damages.

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