Netflix Wins Patent for Online DVD Rentals
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Online DVD rental service Netflix Inc. said Tuesday that it received a U.S. patent covering the methods it uses to log customer requests and track checked-out movies.
Netflix has built one of the Internet’s biggest subscription services by charging $19.95 per month for the right to rent as many as three DVDs for an unlimited time. When subscribers mail back a DVD, Netflix sends another movie from a personal wish list stored at the company’s Web site.
Since its 1999 inception, Netflix has attracted more than 1 million subscribers. The company’s success is attracting more competition, including a similar service offered by Wal-Mart Stores Inc., the nation’s largest retailer.
Los Gatos, Calif.-based Netflix hasn’t determined whether any of its rivals are infringing on the newly issued patent, said Lynn Brinton, a company spokeswoman.
The company plans to collect royalties from any DVD rental service using the roughly 100 processes covered under the patent, Brinton said.
Netflix’s shares surged $1.35 to close at $22.85 on Nasdaq.
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