Blockbuster Sues Netflix

Hey, if you can't compete on the merits of your business, there's always litigation....

WSJ.com - Blockbuster Sues Netflix
Blocksucker Sues Netflix

Blockbuster Inc. said it filed antitrust counterclaims against Netflix Inc., alleging Netflix's lawsuit against Blockbuster's online service is based on “unenforceable patents.”

The Dallas video-rental company filed its counterclaims against Netflix in U.S. District Court in San Francisco, the same court where online DVD-rental service Netflix filed its patent-infringement suit in April challenging the video-store chain's recent Internet expansion.

The Netflix suit focuses on the online wish lists that prioritize the DVD desires of people who subscribe to either Netflix or Blockbuster's Internet service.

Blockbuster's suit says Netflix, of Los Gatos, Calif., is trying to enforce patents “obtained through deceptive practices in an attempt to monopolize the online rental business.”

The claims also allege Netflix failed to inform the Patent Office of previous patents and previous business methods of other companies.

Netflix spokesman Steve Swasey said the company has filed its claims on the matter and will vigorously defend its patents. “It is up to the courts to decide,” he said

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This page contains a single entry by Seth A. published on June 14, 2006 11:40 AM.

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