Blockbuster And Netflix Settle Patent Dispute

from the and-they're-keeping-the-results-secret dept

Last year, we were surprised to see Netflix announce that it owned a patent on its business model and was suing Blockbuster. This was surprising for a company like Netflix that had shown its ability to compete with the big players in the marketplace -- in effect showing how you could succeed against much bigger players without resorting to government-backed monopoly protections. However, Netflix decided that, even as it was killing Blockbuster in the market, it was going to sue for copying its business model. After a year of fighting, however, the two companies have settled the lawsuit, with neither side admitting to what that settlement means. If you read between the lines, however, it certainly sounds like Blockbuster paid up to get the suit out of the way. If true, that would be unfortunate. It's also unclear how (or if) this will impact that separate class action lawsuit against Netflix that claims these patents were used to violate antitrust law by not declaring known prior art.
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  1. identicon
    J.B., 28 Jun 2007 @ 11:17am

    Re: There is no way I will ever go back to Blockbu

    As a Blockbuster manager, I can tell you are the kind of customer that is a pain in the ass, just by your statement. There are no late fees, they give you a week past the due date before they charge you anything, and as long as you return it within 37 days the most you'll pay is 1.35 ( might be slightly less or more depending on location ) for a restocking fee. If you can't get the movie back by a week past the due date, you deserve to pay that small flat amount. If you hold onto it for more than a month, then you should own it, because we haven't been able to make any money off of it. There's no 12:00 deadline anymore, and its been that way for years. I will say that we do get rented out of the new movies too quickly.

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