A very interesting read from Joshua Lennon, Clio's Lawyer In Residence, comparing Netflix's focus on better tech to manage copyright infringement issues and contrasting it with the more ham-fisted litigation tactics of the music industry suing thousands of their own customers as they scrambled to react to Napster and other music-sharing technologies.
Many international Netflix customers use virtual private networks (VPN) that allow them to pretend to be watching in a different country. Canadian subscribers use VPNs to watch U.S. or U.K.-available content, for example. Netflix’s knew this was happening, but seemed to turn a blind eye for a period of time. Right’s holders often complained that Netflix’s inaction allowed people to steal video content, much like Napster let people steal music. Netflix did not sue their customers that worked around country restrictions. Instead, the streaming service instituted better VPN detection and blocking technology.