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Patents

Netflix Granted Patent on DVD Subscription Rentals 638

A few folks noted a new patent showing up from netflix. They apparently now have a patent on their model of subscribing to rentals- where instead of being charged per disc, you are charged a monthly fee and can keep the rentals indefinitely without late fees. You can patent anything! Get on the bus!
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Netflix Granted Patent on DVD Subscription Rentals

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  • PATENT SOURCE (Score:3, Insightful)

    by AyeRoxor! ( 471669 ) on Tuesday June 24, 2003 @11:29AM (#6284717) Journal
    See the patent PDF here [patentlogistics.com].

    Imagine if McDonalds had patented the "drive-thru" method of selling. THE PTO FARKING SUCKS I AM GETTING SO TIRED OF THIS CRAP /pant pant pant
  • by nurd666 ( 242319 ) on Tuesday June 24, 2003 @11:30AM (#6284731)
    Does this patent only cover DVD rentals? I'd hate to see a site like gamefly get hurt over this if the patent is broad enough to include all media rentals with the same scheme.
  • by Remik ( 412425 ) on Tuesday June 24, 2003 @11:31AM (#6284749)
    Walmart To Buy NetFlix.

    They've succeeded in making themselves worth buying, kudos.

    -R
  • You know... (Score:2, Insightful)

    by Spytap ( 143526 ) on Tuesday June 24, 2003 @11:32AM (#6284753)
    Seriously, fuck Wal-Mart for trying to copy someone else's idea and expect to get rich off of it again. I feel about as bad about this as when I was told AOL/Time-Warner lost 90 Billion last year.
    I love Netflix for the way they revolutionized my DVD viewing, and will hence-forth be very protective of them.
  • by Sanity ( 1431 ) * on Tuesday June 24, 2003 @11:33AM (#6284776) Homepage Journal
    While it may be a BS patent, it's nice to see a large corporation get screwed by a patent for once
    Don't be silly, large corporations don't get hurt by patents - sheesh.

    Patents are for keeping out those pesky small innovative companies who can't affort to go to court and don't have their own patent portfolio so that they can force cross-licensing.

  • by siskbc ( 598067 ) on Tuesday June 24, 2003 @11:33AM (#6284778) Homepage
    While it may be a BS patent, it's nice to see a large corporation get screwed by a patent for once.

    Expect Wal-mart to fucking bend Netflix over. I get your "pull for the little man" thing. On the other hand, I'm glad a relatively large company (Netflix) finally pulled this patent crap against a company that's actually going to challenge the patent, as opposed to a mom-and-pop who can't fight back.

  • Patentable (Score:4, Insightful)

    by stanmann ( 602645 ) on Tuesday June 24, 2003 @11:33AM (#6284783) Journal
    Well, I have to say that it is a non-obvious business practice. Otherwise video stores would have tried it years ago. I'm not sure they should have patented it, but it is definitely a useful implementation. Of course the mailorder/internet thing makes it functional...


    I don't think there is anything resembling prior art, and for most of us, it was kindof a WOW! epiphany/paradigm shift thing.
  • by zzzmarcus ( 183118 ) on Tuesday June 24, 2003 @11:35AM (#6284809)
    You're showing your ignorance to basic capitalism.

    BS patent or not, Netflix having a patent on this method of DVD rentals kills the competition--whether it comes from a Big Corporation or otherwise. A lack of competition is ALWAYS bad for the consumer. In the end, it's not WalMart who's getting screwed, it's you.
  • by cnelzie ( 451984 ) on Tuesday June 24, 2003 @11:39AM (#6284856) Homepage
    ...no matter if it was done by a large corporation or a small corporation or some Joe Schmoe living in a trailer park.

    Sure, Netflix provides a new and rather unique system of DVD Rentals, but it isn't really a NEW Idea. There has been years upon years of renting things for a period of time...

    Such as Home or Apartment Rentals. Anyone ever rent an apartment before? How about rent (lease) and automobile from a car dealership?

    This patent should be destroyed as quickly as possible and whoever passed this patent in the USPTO needs to be hung up by their toes for a few weeks.
  • by Anonymous Coward on Tuesday June 24, 2003 @11:39AM (#6284861)
    The part I don't understand is why you jackoffs find it a bad idea that a large corporation would patent an idea, aside from this situation. If a corporation is the first with an idea, how come it suddenly stinks, simply cause they already have money? It's the same reason people switch music and start calling names, and putting music groups down because they sell out. Oh, we're not the only ones listening to it anymore, oh no, it's not cool. They sold out. It's not alternative anymore. Get on with your lives. Either you like something or you don't.
  • Oh yes, there is hope after all.

    The FTD.COM system:

    1. Take order.

    2. Jam in a second choice for crap nobody wants.

    3. Pretend to deliver second choice crap.

    4. Deliver the second choice crap the next day.

    5. Profit!

    Oh yes, no refunds either, but they will gladly deliver more crap you did not want to order as a consolation gift.

    Details here [slashdot.org] (several journal entries cover it).

    BTW, the DVD system sounds suspiciously like renting a car with unlimited mileage. Not sure if this counts as "prior art" or not, however the rental patent certainly counts as stupid.
  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Tuesday June 24, 2003 @11:40AM (#6284876)
    Comment removed based on user account deletion
  • Re:PATENT SOURCE (Score:3, Insightful)

    by TopShelf ( 92521 ) on Tuesday June 24, 2003 @11:41AM (#6284894) Homepage Journal
    Where's the problem here? Netflix came up with a genuinely new business model, for which they should be rewarded if anybody else wants to hop on the same boat. This isn't a blindingly obvious or overly broad patent like the "user clicks on a link and we sell them stuff" that we've seen before.

    The drive-thru was a similarly revolutionary idea - whoever started it SHOULD have patented it...
  • by aborchers ( 471342 ) on Tuesday June 24, 2003 @11:45AM (#6284935) Homepage Journal
    Just a thought: if Netflix successfully defends this patent, you will still be paying them if you rent from anyone using their business method.

  • Awesome (Score:2, Insightful)

    by Microsift ( 223381 ) on Tuesday June 24, 2003 @11:46AM (#6284959)
    NetFlix thought of something that no one else (at least that I am aware of) thought of. They invested a lot of capital in to making this idea work, and just as it starts to get a critical mass, Wal-Mart comes in and tries to run them out of business.

    This is precisely why we have patents! To reward innovation.
  • Re:PATENT SOURCE (Score:3, Insightful)

    by rsheridan6 ( 600425 ) on Tuesday June 24, 2003 @11:54AM (#6285057)
    No, the fact that they were first to market, and therefore have all of the market share and name recognition should be enough. Patents like this serve only to stifle competition and are therefore anti-free market and anti-consumer.

    I can understand giving somebody an 18 year monopoly on a product that required lots of money spent on R&D, but allowing any bright idea to be patented is just idiotic.

  • Re:PATENT SOURCE (Score:5, Insightful)

    by TopShelf ( 92521 ) on Tuesday June 24, 2003 @11:59AM (#6285106) Homepage Journal
    So you're OK with a WalMart coming along with all their resources and wiping out NetFlix as soon as they see that a market is there worth taking? Yeesh, so much for innovation!

    I can understand giving somebody an 18 year monopoly on a product that required lots of money spent on R&D, but allowing any bright idea to be patented is just idiotic.

    Well, that pretty much writes off any small inventor. If you have to pour $X into R&D to get a patent, you've basically walled off a class of innovators from ever bringing their ideas to market.
  • by siskbc ( 598067 ) on Tuesday June 24, 2003 @12:13PM (#6285229) Homepage
    Sorry, wrong answer. Expect Wal-mart to go on about its business gladly ignoring the patent. Why should they care? It's not like netflix wants to waste years of their life and tons of money trying to enforce against *Walmart*.

    Damn, you're a snide little shit. Actually, I wouldn't expect Walmart to invest hundreds of millions of dollars into a business that can be shut down quickly with a court order. They may license the patent or they may fight it, but ignoring it isn't likely. Especially with the treble damages that would potentially exist for a patent of this profile, as claiming to have not seen the patent isn't an option.

    For the exact reasons you claim, netflix is likely to cave, since they DONT want to fight walmart. But once Walmart has large amounts of cash invested in this, they can't walk away from a settlement without committing financial suicide, giving strong leverage to netflix. So expect any action to occur before walmart rolls their operation.

    Get it?

  • by slaker ( 53818 ) on Tuesday June 24, 2003 @12:13PM (#6285235)
    Netflix used to have some adult-ish titles a couple years ago. Then they just... vanished off the rental lists. I wrote in and asked about it. Got no response.

    I originally signed up for the service to get a couple of titles my video store didn't have (Brazil, some concert films). I had a few titles on my rental list that started "Playboy's...", but after not looking for a month or so, I couldn't even find the category any more.

    In my mind, if you're gonna carry very-soft adult materials like playboy videos (basically just naked girls prancing around. Nothing more provokative than a nipple), then do it. Don't change your mind. The local cable operators carry more "offensive" on the scrambled stations all day long, and they didn't stop carrying mainstream movies with more provokative content.

    They changed their mind. I don't know why. But after that, I thought perhaps they COULD change their minds again, and suddenly head down the Blockbuster path of "extra special no-naked-people" versions of movies. Boo Hiss.

    I've used a couple of rental services since then, but after a better video store finally opened locally, I had almost no need of netflix service.

    Now I just use wantedlist.com, which is an adult-only service, and don't worry what the hell netflix might do.
  • Re:You know... (Score:4, Insightful)

    by Dynastar454 ( 174232 ) * on Tuesday June 24, 2003 @12:15PM (#6285258) Homepage Journal
    +5? Good god. What are the mods smoking? Even though NetFlix is sort of cool- I used to be a member, but have moved on to "greener" [greencine.com] pastures- and they did have a good idea, why should this be patentable? Being able to patent "Do X, only on the internet" is about as stupid as can be. What if it had been possible to patent "Do X"? Would you all be happy if Blockbuster had a patent on movie rentals? Alamo on car rentals? Or, perhaps, Expedia on "Buying airline tickets... on the internet!" As others have said, unlimited-time-out rentals are not a new idea, either, so they really are doing this based of off "... on the internet".
  • Re:PATENT SOURCE (Score:5, Insightful)

    by Shalda ( 560388 ) on Tuesday June 24, 2003 @12:21PM (#6285321) Homepage Journal
    Except, of course, that it's not. Rental clubs are nothing new. Growing up, we had a video rental store nearby that offered a subscription model. You take that and add round-trip shipping and that's suddenly something new? I'm sure if you look hard enough you can find an earlier identical business model based around something other than DVDs. The closest thing to being revolutionary here is the notion that it might actually make any money.
  • Re:Walmart? (Score:3, Insightful)

    by cheezedawg ( 413482 ) on Tuesday June 24, 2003 @12:22PM (#6285328) Journal
    Has /. become so skewed that any patent is considered evil? I mean, Netflix did come up with a very innovative business plan, and they execute that business plan very well. WalMart came along several years later is trying to copy Netflix. Why shouldn't Netflix get some license revenue from that?

    This is not an outrageous patent.
  • by gid ( 5195 ) on Tuesday June 24, 2003 @12:23PM (#6285337) Homepage
    I had a few titles on my rental list that started "Playboy's...", but after not looking for a month or so, I couldn't even find the category any more.

    suddenly head down the Blockbuster path of "extra special no-naked-people" versions of movies.

    That annoys the shit out of me. What the fuck is it with people here in the States that makes them so afraid of seeing naked people? BUT THE CHILDREN MIGHT SEE. It's the soccer moms doing it, I'm telling you...

    It's not so much that they cut the naked people out. It cutting ANYTHING out of the movie without telling me. I want to see the movie the way the director intended it. Which is why I'm a big fan of director's cuts that have more footage, a lot of times extra scenes that add a LOT to the movie. I hate it when someone high up cuts this and this out to get the pg-13 rating which means bigger sales.

    Screw that. Movies are an art form. I don't go to a museum and expect to see black bars on all the naked statues and paintings, do I? I fail to see the difference.
  • Re:PATENT SOURCE (Score:2, Insightful)

    by rsheridan6 ( 600425 ) on Tuesday June 24, 2003 @12:30PM (#6285421)
    If someone else can steal your idea and put you out of business when you're the established player, you're probably doing a shitty job of running your business.
  • Re:PATENT SOURCE (Score:4, Insightful)

    by liquidsin ( 398151 ) on Tuesday June 24, 2003 @12:36PM (#6285490) Homepage
    Genuinely new business model? Shit, man, I remember renting movies 20 years ago. Let's try this once more for those at the back of the class: BUSINESS METHODS SHOULD NOT BE PATENTABLE. Can I patent renting DVDs out of my mom's basement? How about on a train, or under water maybe? How about bubble wrapping them before I ship them, or accepting food stamps for payment? Why not just patent a method for charging money to rent things and collect royalties on everyone renting movies, power tools, whatever? Just because they use a different way of distributing and billing, doesn't mean they should get a patent on it anymore than Blockbuster should have a patent on renting movies from a store. Patenting business methods kills competition, plain and simple.

  • Come on, guys. Netflix are competing with a very large and not-so-gentle adversary, Walmart. They (Netflix) have built up a good business providing their clients with exactly what they want. But their business model has turned into a commodity. Patent protection is an unusual way of protecting business processes but if it works, all power to them.
    This is one of the better patents I've seen recently - it actually describes true innovation that has been implemented, and actually protects the innovator against competitors who would copy the idea and the model.
  • by vistic ( 556838 ) on Tuesday June 24, 2003 @12:40PM (#6285530)
    Soooo... does this mean Blockbuster has to stop its movie rental pass things?

    As I recall, they came out with that after Netflix.
  • Re:Awesome (Score:3, Insightful)

    by wurp ( 51446 ) on Tuesday June 24, 2003 @12:48PM (#6285617) Homepage
    Re-read the constitution. Patents are there to promote progress, not to reward anything.

    The question is, would they have done this if it hadn't been patentable? If so, it shouldn't be patentable. If they would have done it anyway, then the patent isn't promoting progress.
  • Changing Your Mind (Score:1, Insightful)

    by Anonymous Coward on Tuesday June 24, 2003 @12:51PM (#6285652)
    In my mind, if you're gonna carry very-soft adult materials ... then do it. Don't change your mind.

    NetFlix is just a business. If they stopped carrying adult titles, it's very likely that adult titles were a money-losing item. Perhaps an awfully high percentage of them "disappeared in the mail." NetFlix does put it's customers on the honor system after all. I bet a lot of DVDs that are reported stolen are simply kept.

    For whatever it's worth, I've been a NetFlix subscriber since Fall 2002, and I've had very good luck. Fast and correct service, and only a few discs too scratched up to play correctly. I like it.
  • by zenyu ( 248067 ) on Tuesday June 24, 2003 @12:54PM (#6285690)
    According to Title 35 (Patents) of the US Code, not just anything is patentable. In fact, only inventions and processes defined here are patentable. Further, there are specific instances when an invention or process is not patentable.

    The problem is none of these are enforced. It's easy cheesy to patent something that has been in the public domain for hundreds of years. Perhaps those patents aren't valid, but defending against an invalid patent claim takes millions. You independently "invent" thousands upon thousands of patented ideas every time you write a program. If there weren't a general truce and distain for patents in the field we would in an even bigger mess. The business world will be in a similar morass in a few years now that business practice patents have been validated, except I imagine 90% of MBA's would kill the goose that lays the golden eggs if hungry for some poultry.

    God help anyone starting a business now in the developed world, well unless it is a legal firm with patents on the partner system for IP cross licensing.
  • by infolib ( 618234 ) on Tuesday June 24, 2003 @12:56PM (#6285705)
    While it may be a BS patent, it's nice to see a large corporation get screwed by a patent for once.

    Rather short-sighted. I personally don't care whether corporations are large or small, as long as they make nice products without ruining things for the rest of society (such as environment, legislation, etc.)

    There are no winners in the BS patent game, except perhaps patent attourneys. Seeing people punished for trying to do productive work makes me feel sick and sad. Anyway, they'll probably start suing from the low end, so wipe the grin off your face.
  • Re:Walmart? (Score:5, Insightful)

    by Zaak ( 46001 ) on Tuesday June 24, 2003 @01:20PM (#6285965) Homepage
    Unfortunately for you, many people, including the U.S. Court of Appeals for the Federal Circuit, disagree.

    Unfortunately, the people who believe that business models should be patentable will find out too late that it was a bad idea.

    "Intellectual Property" isn't. Ideas are very different from material goods, and trying to treat them the same is stifling the creativity that has advanced science, technology, and business in the United States up until now.

    TTFN
  • by Anonymous Coward on Tuesday June 24, 2003 @01:43PM (#6286225)
    Wasn't it not too long ago that Netflix was the darling of many /.ers? People applauded Netflix for their "innovative" rental model, and I'm sure many felt it was good to "stick it" to the big chains like Blockbuster? When the Walmart announcement came along, weren't people rallying around Netflix? Now, it turns out Netflix is playing the business game the way thousands of other companies are playing it, and now they're evil?
  • by ipandithurts ( 516079 ) on Tuesday June 24, 2003 @02:40PM (#6286822) Homepage Journal
    Netflix.com's patent (6,584,450) is surprisingly broad and the claims are NOT limited to DVDs or movies (although some dependant claims provide those limitation).

    Hopefully they'll simply use it as a defensive mechanism to prevent others from suing them for patent infringement. But one never knows.

    The independent claims read:

    1. A method for renting items to customers, the method comprising the computer-implemented steps of:

    receiving one or more item selection criteria that indicates one or more items that a customer desires to rent;

    providing to the customer up to a specified number of the one or more items indicated by the one or more item selection criteria; and

    in response to receiving any of the items provided to the customer, providing to the customer one or more other items indicated by the one or more item selection criteria, wherein a total current number of items provided to the customer does not exceed the specified number.

    and

    16. A method for renting items to customers, the method comprising the computer-implemented steps of:

    receiving one or more item selection criteria that indicates one or more items that a customer desires to rent;

    providing to the customer up to a specified number of the one or more items indicated by the one or more item selection criteria; and

    in response to receiving any of the items provided to the customer, providing to the customer one or more other items indicated by the one or more item selection criteria, wherein a total number of items provided to the customer within a specified period of time does not exceed a specified limit.
  • Re:Good for them (Score:3, Insightful)

    by Tsu Dho Nimh ( 663417 ) <abacaxi@@@hotmail...com> on Tuesday June 24, 2003 @03:33PM (#6287447)
    "I don't know of any flat rate rent-by-mail thing in existance" (snip) "There are many, many, ways to get a product to market most of which are methods that have been in place for centuries and will never be patentable."

    A couple of centuries? "Subscription libraries" have been in existance since at least the 1750s (and were apparently still in existance in the 1950s). After the post office was invented, they delivered books to the subscribers by mail. It's the same marketing plan as used by NetFlix ... you signed up, paid, and could check out and return as many books as you could read.

  • by cait56 ( 677299 ) on Tuesday June 24, 2003 @04:24PM (#6288061) Homepage

    Most of these comments are way off-topic. Whether or not this is a good method of distributing DVDs is not the issue, nor is whether anyone should anyone for movies at all, or how good various companies are at delivering on what they promise.

    The real issue is that however good this business model is or isn't, there is absolutely nothing that is technically innovative about it. It is a simple billing model -- something that is explicitly not patentable.

    This doesnt' even call for congressional action. Firing half of the patent department for technical incompetence and failure to read the laws they are supposed to be enforcing would be more appropriate.

For God's sake, stop researching for a while and begin to think!

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