In general,
Netflix operates by allowing subscribing members to choose DVDs –
the number allowed depends on the subscription plan chosen. These
are then posted out to members for viewing and return.
The most popular plan costs $17.99 per month, for which members
can rent as many DVDs as they like and keep them for as long as
they want, but can only have three DVDs out at any one time. The
firm does not charge for late returns.
Netflix has obtained two patents – one granted only on Tuesday –
in order to protect its method of doing business. According to the
BBC, the first patent covers the selection, delivery and return
process, while the second relates to the no-late-fees policy and
the way in which clients amend their movie lists.
The firm is now claiming that Blockbuster’s online service
infringes upon these patents, and has filed suit in a San Francisco
District Court. The action seeks damages and a court order to
prohibit any further infringement.
Blockbuster has made no comment on the action so far.
