April 4, 2006 5:45 AM PDT

Netflix sues Blockbuster to shut online service

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Online DVD rental company sues rival for patent infringement, asking federal judge to shut down Blockbuster's online service.

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Here we go again.
A prime example of why business processes shouldn't be patentable. Netflix reckons they came up with the ideas of renting DVDs online and maintaining a stock and order list. What bozo awarded these flaky patents?

DVDs are physical products and, as such, are no different than anything else that can be rented or bought online. Only last month, I rented scaffolding from a company using their website. Does Netflix have a right to sue them as well? Or is there something magical about DVDs that makes renting them different from renting a car or a hotel room?

The second patent, that seems to be about keeping customer orders straight, isn't an innovation. It's a normal part running any kind of mail order businss. If I subscribe to a magazine, I expect to receive April's issue before May's. If I join a book club, I expect to get the Fellowship of the Ring before the Two Towers. Will Netflix be coming after Readers' Digest next?

Once again, we see companies trying to patent fresh air and the patent office going right along with them.

This nonsense has to stop.
Posted by JFDMit (178 comments )
Reply Link Flag
Please patent my business model
I totally agree. This is completely ludicrous! The Patent Office should not issue patents for this kind of stuff.
Posted by ken.securitymail (2 comments )
Link Flag
Here we go again.
A prime example of why business processes shouldn't be patentable. Netflix reckons they came up with the ideas of renting DVDs online and maintaining a stock and order list. What bozo awarded these flaky patents?

DVDs are physical products and, as such, are no different than anything else that can be rented or bought online. Only last month, I rented scaffolding from a company using their website. Does Netflix have a right to sue them as well? Or is there something magical about DVDs that makes renting them different from renting a car or a hotel room?

The second patent, that seems to be about keeping customer orders straight, isn't an innovation. It's a normal part running any kind of mail order businss. If I subscribe to a magazine, I expect to receive April's issue before May's. If I join a book club, I expect to get the Fellowship of the Ring before the Two Towers. Will Netflix be coming after Readers' Digest next?

Once again, we see companies trying to patent fresh air and the patent office going right along with them.

This nonsense has to stop.
Posted by JFDMit (178 comments )
Reply Link Flag
Please patent my business model
I totally agree. This is completely ludicrous! The Patent Office should not issue patents for this kind of stuff.
Posted by ken.securitymail (2 comments )
Link Flag
I want to patent
I want to patent a thing like a building, where people come in in a line, and stand in front a thing like a counter, and give a guy behind the counter-like thing their credit card so they can borrow a DVD for a few days.

Must be a pretty low grade of moron in the US patent office these days.
Posted by gggg sssss (2292 comments )
Reply Link Flag
I want to patent
I want to patent a thing like a building, where people come in in a line, and stand in front a thing like a counter, and give a guy behind the counter-like thing their credit card so they can borrow a DVD for a few days.

Must be a pretty low grade of moron in the US patent office these days.
Posted by gggg sssss (2292 comments )
Reply Link Flag
Is this for real?
I use Netflix. I stopped using blockbuster for their lack of in-store movies and late fees. But who the hell is working for the patent office these days. It seems you can patent any logical process and some brainless/braindead entity will give you a patent. PLEASE STOP THE NON-SENSE!!!!

Can I patent the action of moving my finger up-and down. It can be use to click on a keyboard? It could also be use to click on a mouse. What a great patent!!!
Posted by yacahuma (422 comments )
Reply Link Flag
You were beaten to it.
The whole Amazon "click to buy" or "one click order" patent case was pretty much about patenting the action of moving a finger. While there was all manner of legal mumbo jumbo covering it, the truth is that the fight was about people clicking once to buy a product rather than two or three times.

Utter garbage.
Posted by JFDMit (178 comments )
Link Flag
Is this for real?
I use Netflix. I stopped using blockbuster for their lack of in-store movies and late fees. But who the hell is working for the patent office these days. It seems you can patent any logical process and some brainless/braindead entity will give you a patent. PLEASE STOP THE NON-SENSE!!!!

Can I patent the action of moving my finger up-and down. It can be use to click on a keyboard? It could also be use to click on a mouse. What a great patent!!!
Posted by yacahuma (422 comments )
Reply Link Flag
You were beaten to it.
The whole Amazon "click to buy" or "one click order" patent case was pretty much about patenting the action of moving a finger. While there was all manner of legal mumbo jumbo covering it, the truth is that the fight was about people clicking once to buy a product rather than two or three times.

Utter garbage.
Posted by JFDMit (178 comments )
Link Flag
If I was in the US
Netflix would loose my business for exactly this kind of behaviour.

Now who gets to pay for all this legal BS...you the consumer in higher than needed fees...The lawyers get rich and the consumer gets it up the shoot.
Posted by KsprayDad (375 comments )
Reply Link Flag
Exactly
You make a good point on the cost of all this patent litigation, but it isn't the whole story.

Even if a company isn't sued by some joker who thinks he holds the patent on saying 'have a nice day,' it has to behave as if it will. So it spends an inordinate amount on legal counsel, patent experts and sheer paperwork, against the day when some litigant crawls from under the carpet and starts flinging suits left and right.

All this expense is pasted directly onto the purchase price of the products you buy. It's the innovation tax and it's paid to lawyers.
Posted by JFDMit (178 comments )
Link Flag
If I was in the US
Netflix would loose my business for exactly this kind of behaviour.

Now who gets to pay for all this legal BS...you the consumer in higher than needed fees...The lawyers get rich and the consumer gets it up the shoot.
Posted by KsprayDad (375 comments )
Reply Link Flag
Exactly
You make a good point on the cost of all this patent litigation, but it isn't the whole story.

Even if a company isn't sued by some joker who thinks he holds the patent on saying 'have a nice day,' it has to behave as if it will. So it spends an inordinate amount on legal counsel, patent experts and sheer paperwork, against the day when some litigant crawls from under the carpet and starts flinging suits left and right.

All this expense is pasted directly onto the purchase price of the products you buy. It's the innovation tax and it's paid to lawyers.
Posted by JFDMit (178 comments )
Link Flag
loose
thaat wouuld suuck iif netfliix loooseed youur businees
Posted by bobbutts (21 comments )
Reply Link Flag
Spelling
Thank you for pointing out a spelling mistake. We are all better and wiser for it.
Posted by KsprayDad (375 comments )
Link Flag
loose
thaat wouuld suuck iif netfliix loooseed youur businees
Posted by bobbutts (21 comments )
Reply Link Flag
Spelling
Thank you for pointing out a spelling mistake. We are all better and wiser for it.
Posted by KsprayDad (375 comments )
Link Flag
Patent Reform Anybody???
I mean, c'mon! You can patent paying a monthly fee for renting DVDs on a website??? Absolutely ridiculous!
Posted by edwright1000 (2 comments )
Reply Link Flag
Yes, please
Our country runs the risk of companies being afraid to enter new businesses for fear drowning in a sea of patent litigation. The patent system needs to change if we're to remain an economic powerhouse. Otherwise, if this sue-happiness continues we'll end up with a stagnant economy where the only way to advance is to 'feed' off other people's wealth by suing them.
Posted by (402 comments )
Link Flag
Patent Reform Anybody???
I mean, c'mon! You can patent paying a monthly fee for renting DVDs on a website??? Absolutely ridiculous!
Posted by edwright1000 (2 comments )
Reply Link Flag
Yes, please
Our country runs the risk of companies being afraid to enter new businesses for fear drowning in a sea of patent litigation. The patent system needs to change if we're to remain an economic powerhouse. Otherwise, if this sue-happiness continues we'll end up with a stagnant economy where the only way to advance is to 'feed' off other people's wealth by suing them.
Posted by (402 comments )
Link Flag
Ridiculous
It seems like every month Netflix comes up with something new to lose customers. First, they started to stall shipments, now this.

What ever happened to competition. I guess the practice is "if you don't want competition, patent it." What is this?

This is as unbelievable as it gets. Next thing you know someone is going to put a patent on power chords.

After cancelling my Netflix subs for a month because of their stalling practices, I'll be doing it again because this is nonsense.

It begs the question "how did Netflix get Wal-Mart to cancel its online video rental store." Netflix CEO said he just talked to them, and they agreed to stop. Now, I wonder if he told them about their patent over the whole process of renting online and out of fear Wal-Mart decided to go along with it, and silently killed the service.

I guess no more Netflix for me after this month. Disgusting.
Posted by Dead Soulman (246 comments )
Reply Link Flag
Well Done
I congratulate you...please follow up with a letter to Netflix and your Congressman. This corporate bullying over nonsense is doing nothing to help the consumer.

Out of curiosity what service do you think you will switch too (if you are going to sign up again with one?)
Posted by KsprayDad (375 comments )
Link Flag
Ridiculous
It seems like every month Netflix comes up with something new to lose customers. First, they started to stall shipments, now this.

What ever happened to competition. I guess the practice is "if you don't want competition, patent it." What is this?

This is as unbelievable as it gets. Next thing you know someone is going to put a patent on power chords.

After cancelling my Netflix subs for a month because of their stalling practices, I'll be doing it again because this is nonsense.

It begs the question "how did Netflix get Wal-Mart to cancel its online video rental store." Netflix CEO said he just talked to them, and they agreed to stop. Now, I wonder if he told them about their patent over the whole process of renting online and out of fear Wal-Mart decided to go along with it, and silently killed the service.

I guess no more Netflix for me after this month. Disgusting.
Posted by Dead Soulman (246 comments )
Reply Link Flag
Well Done
I congratulate you...please follow up with a letter to Netflix and your Congressman. This corporate bullying over nonsense is doing nothing to help the consumer.

Out of curiosity what service do you think you will switch too (if you are going to sign up again with one?)
Posted by KsprayDad (375 comments )
Link Flag
How about this patent?
OK, why are these business processes patent-able?

In light of this finding, i've now filed a patent for cutting my front lawn on an angle, rather than on a parallel or perpendicular line to the front face of my home.

For all of you who cut your lawn this way, you better watch out! :)
Posted by backgroundnoise (34 comments )
Reply Link Flag
Lawncutting
Now I'll have to reprogram my robomower to mow in a new pattern....damn you!

<a class="jive-link-external" href="http://www.friendlyrobotics.com/robomow/" target="_newWindow">http://www.friendlyrobotics.com/robomow/</a>
Posted by KsprayDad (375 comments )
Link Flag
Pay up
I have a patent on goofy patent ideas! So pay up! :)
Posted by (402 comments )
Link Flag
How about this patent?
OK, why are these business processes patent-able?

In light of this finding, i've now filed a patent for cutting my front lawn on an angle, rather than on a parallel or perpendicular line to the front face of my home.

For all of you who cut your lawn this way, you better watch out! :)
Posted by backgroundnoise (34 comments )
Reply Link Flag
Lawncutting
Now I'll have to reprogram my robomower to mow in a new pattern....damn you!

<a class="jive-link-external" href="http://www.friendlyrobotics.com/robomow/" target="_newWindow">http://www.friendlyrobotics.com/robomow/</a>
Posted by KsprayDad (375 comments )
Link Flag
Pay up
I have a patent on goofy patent ideas! So pay up! :)
Posted by (402 comments )
Link Flag
Boo
I'm impressed with the netflix service and how they managed to ward off BBO in the last 1.5 years. To take on someone that size and win is certainly an accomplishment.

This suit turns it upside down. I don't know if they are dealing the deathblow to BBO, but it certainly shows signs of weakness. IMHO, only desparate companies/people sue.
Posted by dquiec (7 comments )
Reply Link Flag
Boo
I'm impressed with the netflix service and how they managed to ward off BBO in the last 1.5 years. To take on someone that size and win is certainly an accomplishment.

This suit turns it upside down. I don't know if they are dealing the deathblow to BBO, but it certainly shows signs of weakness. IMHO, only desparate companies/people sue.
Posted by dquiec (7 comments )
Reply Link Flag
Blockbuster Online Service
In a related note...

Blockbuster seems to be changing the terms of service on the weekly free in-store coupons. Some of the weekly coupons now have restrictions in fine prints that limit free rentals to new one week rentals or non-new releases.

Blockbuster online subscribers currently receive one coupon a week by email for a free in-store movie rental. In the past, these coupons could be used for new two-day or weekly rentals, or for the older movies.

In the last few days, I noticed the restrictions on two customers when I unsuccessfully tried to use their coupons to rent new, two-days movies. After trying to process the coupons per standard Blockbuster procedures, I scanned the fine prints and noticed the changes. Neither customer was aware of any new restrictions.

As a current Blockbuster employee, I questioned the store manager, who was also unaware of any policy change for the free in-store rental coupons from Blockbuster online. The store manager contacted his district training manager, who was also apparently unaware of any changes.

This apparent change is significant since it restricts customers from renting some of the newest released, most-in-demand movies.

According to the store manager, Blockbuster is pushing employees to sell online movie passes. The weekly free coupons are some of the sales tools used to help promote the online service.

Blockbuster employees should be informed of changes so they can accurately present products and promotions. Customers deserve to be informed of any restrictions on the coupon use--before signing up for service. And perhaps, current subscription holders should also be informed of any change to service.

Last side note: So far, have only personally seen coupons from two customers that contained the new restrictions. During the past week, other customers presented coupons that worked "normally".
Posted by Blockbusterinterest (2 comments )
Reply Link Flag
I found this out last week...
What's great for me about the online service is getting the free in-store coupons. My son can sit on an online DVD for weeks, while I tend to get in-store releases checked out and returned quickly. Last week I found out about the "fine print" change when I tried to rent a 2-Day new release.

What's crazy is that the employees aren't even aware. The service rep tried scanning and manually entering my coupon for 10 minutes until she could get the attention of the store manager. Fortunately the manager comped the rental this time.

It's bad enough that they made this change period, but to not inform the customers nor their own employees is just inane. I will have to see how the weekly rentals provision affects my experience; I terminated Hollywood Video's membership program (MVP) because it took too long for new releases to become available for MVP renting.

-J
Posted by jmaczura (2 comments )
Link Flag
Blockbuster Online Service
In a related note...

Blockbuster seems to be changing the terms of service on the weekly free in-store coupons. Some of the weekly coupons now have restrictions in fine prints that limit free rentals to new one week rentals or non-new releases.

Blockbuster online subscribers currently receive one coupon a week by email for a free in-store movie rental. In the past, these coupons could be used for new two-day or weekly rentals, or for the older movies.

In the last few days, I noticed the restrictions on two customers when I unsuccessfully tried to use their coupons to rent new, two-days movies. After trying to process the coupons per standard Blockbuster procedures, I scanned the fine prints and noticed the changes. Neither customer was aware of any new restrictions.

As a current Blockbuster employee, I questioned the store manager, who was also unaware of any policy change for the free in-store rental coupons from Blockbuster online. The store manager contacted his district training manager, who was also apparently unaware of any changes.

This apparent change is significant since it restricts customers from renting some of the newest released, most-in-demand movies.

According to the store manager, Blockbuster is pushing employees to sell online movie passes. The weekly free coupons are some of the sales tools used to help promote the online service.

Blockbuster employees should be informed of changes so they can accurately present products and promotions. Customers deserve to be informed of any restrictions on the coupon use--before signing up for service. And perhaps, current subscription holders should also be informed of any change to service.

Last side note: So far, have only personally seen coupons from two customers that contained the new restrictions. During the past week, other customers presented coupons that worked "normally".
Posted by Blockbusterinterest (2 comments )
Reply Link Flag
I found this out last week...
What's great for me about the online service is getting the free in-store coupons. My son can sit on an online DVD for weeks, while I tend to get in-store releases checked out and returned quickly. Last week I found out about the "fine print" change when I tried to rent a 2-Day new release.

What's crazy is that the employees aren't even aware. The service rep tried scanning and manually entering my coupon for 10 minutes until she could get the attention of the store manager. Fortunately the manager comped the rental this time.

It's bad enough that they made this change period, but to not inform the customers nor their own employees is just inane. I will have to see how the weekly rentals provision affects my experience; I terminated Hollywood Video's membership program (MVP) because it took too long for new releases to become available for MVP renting.

-J
Posted by jmaczura (2 comments )
Link Flag
 

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