German Court Ordered Netflix to Cease Patent Infringement

The District Court of Munich ruled that Netflix (NASDAQ:NFLX) is infringing on a patent held by Broadcom (NASDAQ:NASDAQ:AVGO), a global technology company. The patent is related to high-efficiency video coding (HEVC/H.265), a crucial technology for high-quality video transmission. This decision marks a significant milestone in an ongoing dispute between the two companies that began in 2018.

Broadcom accused Netflix of infringing multiple patents related to video streaming services in the United States, Germany, and the Netherlands. The specific European patent that formed the basis of this recent ruling is EP 2 575 366, known as the “366 Patent.” This patent covers fundamental features of digital video processing widely used in HEVC/H.265 video coding.

The court found that Netflix violated the '366 Patent by transmitting HEVC video, a technology Netflix extensively employs to provide Ultra HD content to its user base. As a result of the ruling, the court issued an injunction requiring Netflix to cease and desist all further infringement activities within Germany. This injunction restricts Netflix from utilizing Broadcom’s patented technology in certain video streaming services.

Mark Terrano, Vice President and General Manager of Broadcom’s Intellectual Property and Licensing Division, expressed satisfaction with the court’s ruling. "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," Terrano said.

Netflix has not yet responded to the ruling. This legal development is expected to have significant implications for both companies and could potentially reshape aspects of the broader tech and entertainment industry.