Broadcom takes Volkswagen to court in $1bn patent claim

US-based semiconductor company Broadcom has taken automobile manufacturer Volkswagen to court in Germany over alleged patent infringement. 

German magazine Der Spiegel first reported the lawsuit—which is allegedly seeking $1 billion from Volkswagen—on Friday, November 2. 

A Volkswagen spokesperson confirmed to WIPR that Broadcom had filed actions in connection with “allegations concerning patent issues”. 

“Volkswagen has carried out a legal review of the claims and has taken the necessary steps to defend its interests,” they added.

The Volkswagen spokesperson said they were unable to provide further information.

Der Spiegel said that the claim concerned the use of 18 patents covering Broadcom semiconductors which Volkswagen uses for its navigation and entertainment system in some cars. 

Broadcom has reportedly brought suits against Volkswagen before patent courts in the German cities of Mannheim and Munich, Der Spiegel added. 

According to the magazine, Broadcom has threatened to seek a provisional ban on the production of the relevant Volkswagen models, as well as some models of its Audi and Porsche brands.

Peter Koch, legal director at Pinsent Masons Germany, said that suits like these are expected as developments in the “connected IP” space have broadened the list of potential defendants.

“It is now not only the suppliers but the car manufacturers themselves that are faced with such attacks that—provided an injunction is granted—can torpedo the production of various car models,” added Koch, who is based in the firm’s Munich office.

Volkswagen is not the only car maker that Broadcom has gone to war with—in June this year, WIPR reported that the US International Trade Commission announced its plan to initiate an investigation into Toyota following a patent infringement claim filed by Broadcom. 

Broadcom alleged that Toyota, Panasonic, Denso Ten, Renesas Electronics and Japan Radiowere violating section 337 of the Tariff Act of 1930 by importing and selling certain infotainment systems and automobiles containing components that infringe several Broadcom patents.