Broadcom, a global technology leader, specializing in designing, developing, and supplying semiconductor and infrastructure software solutions, has quite recently filed a lawsuit against Netflix (an American production company and media-services provider) alleging Patent Infringement. Broadcom, whose semiconductor chips are there in various set-top boxes across the globe, has claimed that Netflix has infringed upon eight of its patents covering data transmission and video playback. The lawsuit claims that Netflix’s patent infringement has contributed immensely to the rise of cord-cutting, which, in turn, has driven down the demand for Broadcom’s chips to a great extent.
In its lawsuit filed, Broadcom has stated that as a direct consequence of the on-demand streaming services offered by Netflix, the global market corresponding to the traditional cable services requiring set-top boxes has declined, and shall continue declining further as well, thereby considerably reducing its set-top box business. Besides, Broadcom mentioned that it had well-informed Netflix of the patent infringement last year in September itself; however, Netflix declined to engage in a negotiation to license Broadcom’s patents. Left with no other choice, the Broadcom Entities have now filed a Patent Infringement Lawsuit to protect their Intellectual Property Rights (IPRs) and the significant investment in the research and development of the novel technologies.
A Netflix spokesperson declined to make any comment on the lawsuit filed.
In 2017, Broadcom had also filed a series of patent infringement lawsuits against the manufacturers of smart TVs. In 2018, the US International Trade Commission ruled against the US chipmaker by finding that the two of the defendants, including Sigma Designs and Vizio, had not infringed upon Broadcom’s patents.
More recently, a jury ordered Broadcom and Apple to pay $270.2 million and $838.8 million, respectively, for infringing upon patents belonging to Caltech (a private doctorate-granting research university in Pasadena, California) after a trial in January. The jury stated that iPads, iPhones, and other Apple devices used Broadcom chips, which relied heavily on the university’s patented wireless data technology. Both Apple and Broadcom said they would appeal the verdict.