Netflix in Midst of Legal Actions23 Mar, 2006 By: Jessica Wolf
Netflix, Inc. is reportedly suing NCR Corp., a technology and service company that creates products that facilitate business-to-consumer transactions.
According to a Bloomberg News report, Netflix's suit is a result of NCR threatening to sue the online rentailer for certain of Netflix's back-end operations that NCR claims infringes on its patents. NCR is demanding royalties.
Meanwhile, a San Francisco judge delayed approval of the class action settlement filed against Netflix for its “throttling” practice (delaying DVDs to high-volume users). The tentative settlement would force Netflix to give throttled users a free month of rentals.
Judge Thomas Mellon Jr. put a hold on that and also said he plans to award less than the $2.3 million in fees claimants sought against Netflix, and he also plans to halve attorney fees in the case, according to an AP News report.