Broadcom sues Netflix over patent infringement on video playback tech

Hemani Sheth Mumbai | Updated on March 16, 2020 Published on March 16, 2020

Claire Foy as Queen Elizabeth II for Netflix series 'The Crown'. (in picture)   -  Bloomberg

Company’s sales impacted as a result of Netflix’s video streaming technology

Chipmaker Broadcom has sued Netflix over patent infringements with regard to video playback and data transmission.

According to the company that manufactures semiconductor chips for cable set-top boxes, Netflix has infringed on eight patents dealing with video playback and data transmission.

This has impacted the company’s sales as demand for cable devices reduced due to Netflix’s video streaming technology, according to the lawsuit filed by the chip manufacturer on Friday.

“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,” Broadcom said in the suit.

The company said that it had tried to negotiate with Netflix back in September. The OTT giant, however, had refused to respond.

“Representatives of the Broadcom Entities have repeatedly attempted to engage Netflix in licensing discussions. As part of these attempts, the Broadcom Entities informed Netflix of its infringement of the patents asserted in this complaint,” the lawsuit further read

This is not the first time that the chipmaker has tried to take the legal route against the competition.

The company had filed a lawsuit against smart TV manufacturers back in 2017. The U.S. International Trade Commission had ruled against the company stating that the smart TV manufacturers named in the suit, Vizio and Sigma Designs, had not infringed on Broadcom’s patents as alleged, according to media reports.

In another instance, a Los Angeles jury had ordered Apple and Broadcom to pay $1.1 billion to a university in California for infringing on four Wi-Fi technology patents in January. Broadcom is intending to appeal the verdict, it had said in a public statement.

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Published on March 16, 2020
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