Netflix Inc. v Blockbuster Inc.

Analysis Group client Blockbuster Inc. settled its patent litigation with Netflix Inc., with both companies agreeing to dismiss all claims. Netflix's lawsuit alleged Blockbuster had infringed on the online rental service's patents when it began renting DVDs through the Internet in 2004. Specifically, Netflix contended it held two patents covering its automated techniques for managing customers' DVD wish lists and the method of charging a flat monthly fee for the rentals. Working with law firms Bingham McCutchen and Alschuler Grossman, an Analysis Group team, including Managing Principal Jeffrey H. Kinrich and Vice President Kevin Gold, conducted a reasonable royalty analysis to calculate damages and assisted counsel in rebutting the opposing expert's analysis. The terms of the settlement were not disclosed, but Blockbuster announced in an SEC filing that the settlement would have no material effect on the company's future financial performance.