Netflix sued by Broadcom for infringing video playback technology patents

Broadcom, a leading manufacturer of semiconductor chips for cable set-top boxes, filed a patent infringement lawsuit against Netflix with regard to video playback and data transmission. Broadcom has alleged that Netflix has infringed on eight of Broadcom’s patents dealing with video playback and data transmission.

In the suit, Broadcom has stated that “as a direct result of the on-demand streaming services provided by Netflix, the market for traditional cable services that require set-top boxes has declined, and continues to decline, thereby substantially reducing Broadcom’s set-top box business.”

According to Broadcom, it had tried to negotiate with Netflix in September 2019, but Netflix declined to engage in a negotiation to license Broadcom’s patents. The suit states that Broadcom was left with no other choice but to bring this action to protect their rights and their investment in the research and development of novel technologies.

Broadcom has even earlier tried to take the legal route against the competition wherein the company had filed a lawsuit against smart TV manufacturers Vizio and Sigma Designs in 2017. However, the US International Trade Commission found that they weren't violating the patents as alleged.

In another instance, in January, a federal jury directed Broadcom to pay $270.2 million to the California Institute of Technology (Caltech) for infringing on patents belonging to them. The jury found that Apple iPhones, iPads and other Apple devices used Broadcom chips that used the University’s patented wireless data technology.