Blockbuster Tells Netflix to Shove It
By Nino Marchetti
April 06, 2006
Things heat up between rival online video rental services as Blockbuster publicly condemns a Netflix lawsuit over key patents, calling it without merit and promising to defeat it.
Blockbuster defended itself today against claims it is infringing on key patents rival online video rental service Netflix owns regarding "a computer-implemented method for renting moves to customers", calling a lawsuit filed by Netflix Tuesday without merit.
In an 8-K filing with the Securities and Exchange Commission, Blockbuster said their Blockbuster Online service has a right to be in existence and that they will "defend itself vigorously" against a lawsuit filed by Netflix in a California federal court. Blockbuster even went so far as to say they see this lawsuit as an attempt by their competitor to force them from the marketplace without letting consumers decide.
"We believe this lawsuit is an attempt by Netflix to stifle competition and, as a result, reduce consumer choice," said Shane Evangelist, senior vice president and general manager for Blockbuster Online, in a statement. "The timing of this lawsuit appears to confirm that Blockbuster Online has emerged as a real competitive force in the online rental industry. Apparently Netflix would prefer to take us on in the courts rather than facing us in the marketplace where the consumer is the judge."