Variety reported that Broadcom accused Netflix of infringing eight of its patents related to video playback and data transmission. It also said that Netflix's infringement contributed to the rise of "cord-cutting" (that is, no longer paying cable TV fees and watching Internet videos instead), thereby reducing the demand for Broadcom's cable TV chips.
The lawsuit stated: "With no choice, Broadcom took this action to protect their rights and investment in the research and development of new technologies." It is understood that Broadcom contacted Netflix about infringement as early as September 2019, but Netflix refused to negotiate on Broadcom's patent license.
In fact, Broadcom filed a series of infringement lawsuits against several smart TV manufacturers in 2017. But in the following year, Broadcom lost the case because the US International Trade Commission ruled that two of the defendants, Vizio and Sigma Design, did not infringe.
However, Broadcom has also had some "troubles" recently.
In January, a jury ruled that Broadcom should pay about $270 million for infringing Caltech's patents. At the same time, the jury found that iPhones, iPads and other Apple electronic products use Broadcom chips that do not have Caltech's wireless data technology patents, so Apple was also ordered to pay Caltech $837.8 million for infringement.
Currently, both Broadcom and Apple have stated that they will appeal the ruling.
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