When I asked my local Blockbuster how are they countering the netflix patent for online rentals, the person didn't have a clue! After days of pondering what they used as a way around to the online rental patent, I found following explanation on MSN Money's article, Is Blockbuster doomed? as a part of what Reed Hastings CEO Netflix states.
"Netflix won patent protection for its business model of taking orders online and mailing DVDs to customers. To date, imitators such as Blockbuster and Wal-Mart Stores haven’t stolen enough business to make it worthwhile for Netflix to spend the money in legal fees to enforce the patent and shut the copycats down, says Hastings. So we don’t really know if the patent will hold up in court. But even if the big video chains successfully challenged the patent and ran a big online-based mail-order business, they’d still have a tough time competing because of their brick-and-mortar overhead.
Netflix sews up rental patent: CNET News 24th July Netflix's Patent May Reshape DVD-Rental MarketOnline rental patent granted to NetflixBlockbuster enters online DVD rental businessNetflix patent buys time - Article
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