DVD News: June 14, 2006
In April, 2006, Netflix sued Blockbuster for patent infringement. The basis of the lawsuit is that Blockbuster’s online DVD rental service uses business methods for which Netflix has been granted patents. But on June 13, 2006, Blockbuster filed a countersuit against Netflix on grounds the patents are unenforceable. Blockbuster is accusing Netflix of trying to set up a monopoly in violation of antitrust laws. Also, Blockbuster charges that Netflix failed to disclose the existence of related patents, notably those held by NCR. It seems likely that the outcome of this case will eventually affect the millions of people who rent DVDs online.