Netflix sues Blockbuster for patent infringement

Posted on April 5th, 2006

Netflix Inc. is suing Blockbuster Inc. for illegally copying its ideas, namely having a DVD wish list and offering rentals with no time limits and no late fees. Both companies offer subscribers up to three DVDs at a time for the monthly fee of $17.99. When movies are returned, the service automatically sends the subscriber the next available movie on her or his wish list.

Netflix patented the process of managing wish lists in June 2003. Netflix had 4.2 million subscribers at the beginning of 2006, while Blockbuster has signed up about 1.2 customers so far.

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