Blockbuster Sued over Business Model

Blockbuster is being sued by their major competitor over its business model. A major issue is whether Blockbuster’s queue feature, used to select and distribute DVDs to subscribers, is a patent violation.

The complaint was filed in the U.S. District Court in San Francisco and is likely to launch the biggest legal battle yet in the DVD-by-mail industry.

Associated Press:

Online DVD rental service Netflix Inc. on Tuesday accused Blockbuster Inc. of illegally copying its ideas in a patent infringement lawsuit challenging the video store chain's recent Internet expansion.

The complaint, filed in U.S. District Court in San Francisco, focuses largely on the online wish lists that prioritize the DVD desires of about 5.4 million people who subscribe to either Netflix or Blockbuster's Internet service.

Netflix also believes its patents cover perhaps its most popular feature -- the option of renting a DVD for an unlimited time without incurring late fees.

Read the full article here.
“Netflix Sues Blockbuster for Alleged Patent Infringement”