Netflix Patent #7,024,381: Approach for Renting Items to Customers

I haven't seen a copy of the filing, but reports indicate that Netflix patent #7,024,381, awarded yesterday, is the basis of the patent infringement lawsuit.

Here's the abstract for the patent:

According to a computer-implemented approach for renting items to customers, customers specify what items to rent using item selection criteria separate from deciding when to receive the specified items. According to the approach, customers provide item selection criteria to a provider provides the items indicated by the item selection criteria to customer over a delivery channel. The provider may be either centralized or distributed depending upon the requirements of a particular application. A "Max Out" approach allows up to a specified number of items to be rented simultaneously to customers. A "Max Turns" approach allows up to a specified number of item exchanges to occur during a specified period of time. The "Max Out" and "Max Turns" approaches may be used together or separately with a variety of subscription methodologies.

Netflix was also awarded patent #6,966,484 in November, 2005 for a "mailing and response envelope."

Comments

[Matt]

Reed Hastings doesn't know what "throttling" is but he apparently knows the difference between "Max Out" and "Max Turns" as defined by the patent in question. Note that Reed is one of the "inventors."

That silly guy.

[C Nyze]

I would like to get a patent for reading HackingNetflix at work everyday ... and then charge all of you for infringing on my patent.

[ChicagoGuy]

LOL Finally a clear indication that NF has lied all along... MAX TURNS is the basis for all theor throttling. Lying jerks. Still as I have said beofre I will stay until the nanosecond there is a better alternative. God I hate companies who lie to their customers like this.

[ChicagoGuy]

As an aside I guess you need to protect predatory practices because god knows a future competitor might like to replicate your business model of treating your best customers as badly as possible.

[Becky]

Netflix was first given patent#6584450 in June, 2003, for the "method and apparatus of renting items."

[tachyon.chaser]

I'm sure NF would tell us that "Max Turns" applies to their $11.99 4 DVDs (max) per month plan. I think throttling is a far more sophisticated algorithm designed to control profitability. No one seems to ask why NF has been one of the only .com's to be profitable since the very beginning of their business. The answer is fairly obvious. The only trick is maintaining a subscriber base. And what they're doing is working well (so far).

[CJ]

Maybe the "Max Turns" approach is some future new pricing scheme. You pay for a maximum number of rentals per month - then you could get them all at once or spread them out over the month. If you wanted to watch a DVD some particular time, you'd have a larger in-house inventory to choose from depending on your mood at that time. This might really work for some people.

[tachyon.chaser]

CJ - That's the plan I was referring to in the post before yours. The plan only allows 4 rentals per month for $11.99. I believe it is the only fixed maximum number of rentals per month plan they have.