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A German court ruled that Netflix (NFLX) is infringing on a Broadcom (AVGO) patent and ordered the company to stop streaming video in the country using Broadcom’s technology.
Key Takeaways
- A court in Munich said Netflix is infringing on a patent owned by Broadcom.
- The court issued an injunction, ordering Netflix to cease streaming video using Broadcom technology.
- Netflix shares were unfazed with a 1% increase on Monday.
The District Court of Munich, Germany, said that Netflix is infringing on a patent relating to HEVC/H.265 video coding. The court issued an injunction to the streaming giant, asking it to cease and desist further violation of the patent.
Netflix was found to be infringing on European patent EP 2 575 366, due to its transmission of HEVC video, with which the company delivers Ultra HD content. The court order will prohibit Netflix from streaming content that relies on Broadcom’s technology, with the dispute between the two firms dating back to 2018.
“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, Broadcom’s vice president of intellectual property and licensing in a statement.
Netflix announced last week that it will release its third-quarter earnings on 14 October. In its second quarter report, its Europe and MENA segment accounted for 79.8 million paid memberships, providing $2.5 billion of the company’s $8.1 billion revenue for the quarter.
Netflix shares were unfazed by the news, trading 1% higher on Monday, but they have lost about 3% over the last week in a broader market selloff.
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