In a significant development in the tech and entertainment industry, a ruling by the District Court of Munich on Monday has found Netflix (NASDAQ:NFLX) guilty of infringing on a patent held by global technology company Broadcom (NASDAQ:NASDAQ:AVGO). This ruling marks a notable milestone in an ongoing patent dispute between the two corporations that began in 2018.
Broadcom accused Netflix of infringing numerous patents related to video streaming services across the United States, Germany, and the Netherlands. The specific European patent at the heart of this recent ruling is EP 2 575 366, commonly known as the "366 Patent". This patent encompasses crucial aspects of digital video processing widely utilized in high-efficiency video coding (HEVC/H.265).
The court determined that Netflix violated the '366 Patent through its transmission of HEVC video, a technology that Netflix extensively uses to deliver Ultra HD content to its users. As a consequence of this ruling, the court issued an injunction on Monday, ordering Netflix to cease all further infringement activities within Germany. This injunction restricts Netflix from using Broadcom's patented technology in certain video streaming services.
"Netflix has built a robust video streaming business that relies on Broadcom's patented technology to deliver content to its users, and Broadcom is pleased to see this recognized by the German court," said Mark Terrano, vice president and general manager of Broadcom's Intellectual Property and Licensing Division.
Netflix has yet to respond to the ruling. This legal development is anticipated to have substantial implications for both Netflix and Broadcom and could potentially reshape certain aspects of the broader tech and entertainment industry.
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