RSSNetflix Antitrust Case to Continue
By Ed Oswald | Published August 23, 2006, 12:19 PM
Netflix's apparent attempts to force Blockbuster out of the online rental market were stopped for the time being on Tuesday, as a federal judge ruled that Blockbuster would be allowed to proceed with its antitrust case against Netflix. The lawsuit was filed in response to a patent infringement suit filed by Netflix in April of this year.
That case attempted to shut down Blockbuster Online through an injunction. Netflix claims Blockbuster infringes on two patents, one related to the automatic queue, and another that allows for the automatic receipt of new DVDs as well as reorganization of the queue.
In June, Blockbuster shot back at Netflix, filing an antitrust claim that alleged the company was attempting to monopolize the online DVD rental industry through litigation, and said the lawsuit was based on unenforceable patents. Blockbuster is also using the "prior art" defense in attempting to overturn the patents, a common defense in these cases.
Netflix petitioned the court to dismiss Blockbuster's claims, as well as split the lawsuits into different proceedings, and postpone the discovery process until after the patent issues are handled. U.S. District Judge William Alsup rejected all three motions, saying Blockbuster had a case, and no harm would be done by allowing both cases to proceed.
"Blockbuster may be forced out of the market, which would cede to Netflix virtually complete control of the online-DVD market," Alsup wrote. Netflix would, however, be allowed to refile for a dismissal later in the proceedings if it so desired.
Blockbuster said it was pleased with the ruling, and would continue to proceed on the antitrust claims. Netflix said it would continue to defend its business methods and intellectual property.
Blockbuster shouldn't and can't win this case against NetFlix. U.S. District Judge William Alsup doesn't know what he's talking about saying they have a case.
Just because NetFlix better handles the automatic queues than Blockbuster Online, doesn't mean they're infringing on patents.
NetFlix is online rentals and Blockbuster have stores nationwide. Plus NetFlix is able to keep the prices at Blockbuster relatively low.
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Ringmaster, are you even remotely familiar with the history of this case? You should be before making comments.
Regardless, Blockbuster is not suing Netflix because "NetFlix better handles the automatic queues than Blockbuster Online, doesn't mean they're infringing on patents". Netflix is suing Blockbuster saying that Blockbuster stole their queuing idea.
Blockbuster is countersuing saying that "Netflix... was attempting to monopolize the online DVD rental industry through litigation"
This, of course, points out your fallacious about "Blockbuster hav[ing] stores nationwide". The counter suit is not about retail stores but ONLINE distribution.
Your claim that "U.S. District Judge William Alsup doesn't know what he's talking about" would have more merit if YOU knew what you were talking about.
In summary, if you can't say anything intelligent, don't say anything.
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