DVDPlay sues Redbox, Coinstar for patent infringment
dvdplay, news, redbox October 28th, 2008I just posted about this on Inside Redbox, but wanted to post it here as well…
This must be lawsuit week…
In a bold move, DVDPlay filed a lawsuit today against Redbox and Coinstar (separately) for patent infringement.
I dug into this a bit, and found that DVDPlay filed for this patent on May 25, 2000, and it was just issued today (Oct 28, 2008). So, it has been over 8 years since the patent application was filed.
In addition, I know that Redbox got its start by using (via lease?) DVDPlay-made machines before they started having their own manufactured in 2004.
So, the question is, does DVDPlay have a chance at winning a case like this when they previously worked with Redbox voluntarily?
It seems to me that DVDPlay is grasping at anything it can to get additional money for their currently failing operation. With Redbox and Coinstar leading the pack, perhaps DVDPlay sees them as a target with deep pockets.
Also, how will this patent and these cases affect Blockbuster’s plans?
I would love to hear any thoughts you may have on this, so please comment below. If you are a lawyer (or play one on TV), please let us know what you think about DVDPlay’s chances here, as well as their possible motivations.
You can view the patent here, as well as more info on the court filing here. I will post more info as soon as it becomes available.
What are your thoughts?
October 29th, 2008 at 10:34 am
That’s just mean to say that the company is failing, shame on you. Actually, the suit has total merit if what they say is true. It is NOT grasping at straws for money although probably RedBox will argue otherwise.
November 3rd, 2008 at 10:37 am
I’m dismayed, to say the least, to see two businesses that formerly worked in harmony dissolve into litigation. While it took 8 years for the patent to be granted (and that is about average time for patents), those 8 years haven’t been at a standstill technologically wise. With Netflix, and other download/by mail services cutting into the already shrinking video rental market, and cable & satellite systems taking away customers, DVDplay and Redbox are having to compete for the same players. As the customer core shrinks, I can see how the two would be at odds. Why coinstar? Coinstar uses the same technology, and to make a patent infringement suit stick with Redbox, they have to go after coinstar too. I don’t know if there are other entities using dvdplay’s patented technology, but if there are, they are waiting for the shoe to drop on them as well. DVDPlay, in my opinion, is exercising it’s right, but I also believe that they are motivated by the missed revenue from residuals from the use of the technology, as well as the fact that RedBox and Coinstar are in better shape, financially, which would naturally cause some “sour grapes” of jealousy. As the customer base shrinks, it’s going to only get worse, and dvdplay is going to try to drive these companies out of business. I haven’t looked at the patent yet, but there are a lot of other electronic Kiosks, and in my opinion, the kiosks are not much different than softdrink and snack vending machines, so I don’t really understand how they could get a patent that would affect both redbox and coinstar.
November 16th, 2008 at 10:40 pm
The patent is specific to a disc dispensing vending machine, so there are no obvious applications to Coinstar’s coin counting machines. However, RedBox is jointly owned by Coinstar and McDonald’s, so they are probably included through guilt-by-association.
Patent litigation takes forever. As with most patents, DVDPlay is shooting for licensing and settlement dollars.
In short, DVDPlay wants RedBox to pay them to go away…
February 2nd, 2009 at 4:36 pm
Sometimes you have to pay when you “borrow” the ideas of others.
Apple had to pay Creative $100 million for much of the iPod technology
http://www.apple.com/pr/library/2006/aug/23settlement.html