ZDNet UK


Skip to Main Content

ZDNet.co.uk - Winner of Best Business Website 2007
  1. Home
  2. News
  3. Blogs
  4. Reviews
  5. Prices
  6. Resources
  7. Community
  8. My ZDNet

 

ZDNet UK RSS Feeds


IT Jobs

Online business Toolkit

Process of renting DVDs online granted patent

Jim Hu CNET News.com

Published: 25 Jun 2003 14:09 BST

  • Email
  • Trackback
  • Clip Link
  • Print friendly
  • Post Comment

Netflix has been granted a wide-ranging patent encompassing its online DVD rental service, in a win that could pose a legal speed bump to Wal-Mart's entry into the business.

The patent, granted by the US Patent & Trademark Office, covers Netflix's entire process of renting out movies and extends to music, video games and books, the California-based company announced on Tuesday.

Netflix charges a monthly subscription fee for people to rent a specified number of movies on DVD. Subscribers choose their titles on the rental Web site, then Netflix posts the films to them. People can keep a limited number of DVDs for the length of the subscription or swap them for new titles.

The patent grant comes at a critical juncture for Netflix. Though its more than 1 million subscribers mean it commands more than 90 percent of the online rental market, according to the company, rivals such as Wal-Mart and Blockbuster are circling.

Earlier this month, Wal-Mart introduced its own online movie rental service that's priced a notch lower than Netflix's. The retail giant charges $15.54 (£9.34) a month to rent two movies at a time, $18.76 to rent three and $21.94 to rent four at a time. Netflix charges $19.95 a month for three movies at a time.

Netflix spokeswoman Lynn Brinton pointed out the resemblance between the Arkansas-based company's DVD rental process and Netflix's own. "You can't look at (the Wal-Mart service) and not see there's a lot of similarities," she said.

However, Brinton would not say whether the patent grant foreshadows a lawsuit against Wal-Mart.

Nonetheless, having the US Patent & Trademark Office on its side could be a powerful weapon for Netflix in a courtroom dispute, according to legal analysts.

"Issued patents are presumed valid until proven otherwise by clear and convincing evidence," said Alan Fisch, an intellectual-property lawyer and partner at Howrey Simon Arnold & White in Washington.


For the latest on everything from DVD standards and MP3s to your rights online, see the Personal Technology News Section.

Let the editors know what you think in the Mailroom.

  • Email
  • Trackback
  • Clip Link
  • Print friendly Print with Dell

Did you find this article useful?
40 out of 88 people found this useful


Full Talkback thread

0 comments


Company/Topic Alerts

Create a new alert from the list below:







Related Jobs

ELECTRONICS DEVELOPMENT MANAGER - South Lancashire

It is expected that you will bring experience of leading a team of Electronics Design engineers or be ready to make the step up to that level, have a ...

Customer Advisor

Working to deadlines to ensure accounts are worked within 10 days Handle customer telephone calls - Understanding of the WBS system - Effectively ...

Senior Software Engineer/C++,WinCE/Cambridge

Excellent progression opportunities and the opportunity to work in an innovative 'Patent' orientated culture Interested? My client is a world-leader ...

Sentry Posts Blog

The vPhone: Why Visa Should Go Mobile

The vPhone: Why Visa Should Go Mobile Author: Eric Everson, Founder MyMobiSafe.com With all of the success of Apple’s iPhone, there is a growing case to support a company like Visa... More

Post a comment

The Google Apple Merger: Fantasy or Fu...

The Google Apple Merger: Fantasy or Future? Author: Eric Everson, Founder MyMobiSafe.com Market research suggests that Microsoft controls upwards of 90% of the respective computer-based... More

1 comment

Trades Unions against ID Cards

The Trades Union Congress (TUC) has backed up airport workers protesting against ID cards, the Financial Times reports. In a letter to Home Secretary Jacqui Smith, the TUC said it... More

Post a comment

Featured Talkback

I wonder, who needs .asia domain? I cannot imagine, what would be useful for Microsoft.asia? Toyota.asia? Then let's register .europe (if .eu is too short). Or perhaps Microsoft.southamerica, Dell.australiaandnewzealand, Coca-Cola.africa... Sound funny? Then why not just use the global and country domains? Or perhaps it is time to drop the domains at all?

By: LadyRoot

Read full story:
Businesses advised to register .asia domains