Thursday, August 24, 2006

Netflix Vs Blockbuster, LawSuit-Countersuit

When Netflix was awarded a patent in April that described the online DVD queue that its subscribers use to prioritize which movies they receive, it was only a matter of time until the inevitable patent infringement lawsuit against its largest competitor, Blockbuster, was filed. Blockbuster shot back with a countersuit, claiming Netflix was illegally trying to monopolize the online rental market.

In the latest chapter of this heated legal battle, a federal judge ruled that Blockbuster's antitrust suit could go forward. Finding that Blockbuster had discovered "potential bad faith" by Netflix, US District Court Judge William Alsup is allowing the suit to proceed in tandem with Netflix's patent-infringement suit.[more at arstechnica]

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