Netflix Sues NCR Over Patent Issue

Netflix Inc., the largest mail- order movie-rental service, filed a lawsuit against NCR Corp. after it received demands to pay royalties on patents related to Internet business operations.

Netflix said in a lawsuit in federal court in San Francisco that “NCR has explicitly charged that aspects of Netflix’s movie rental services and back office operations infringe the NCR patents,� and it wants a judge to rule otherwise. NCR has sent letters threatening to sue if Netflix doesn’t pay royalties, Netflix claims.

“While we don’t comment on matters before the court, NCR allocates considerable resources to the research and development of its products and business solutions, and we will aggressively assert our legal rights to protect our patent portfolio,� NCR spokesman John Hourigan said.