Broadcom blames Netflix for harming cable TV industry in patent suit

Technology company Broadcom has accused Netflix of causing a decline in the demand for traditional cable services requiring set-top boxes, in a patent infringement lawsuit filed late last week.

“Netflix could not displace traditional cable television services, or could not do so as effectively, without the use of the Broadcom entities’ patented technology, which … enable critical aspects of Netflix’s systems,” alleged Broadcom in its suit filed Friday, March 13, at the US District Court for the Central District of California.

In the filing, Broadcom claimed that Netflix has infringed eight of its patents, each covering foundational technologies that are “essential” to various aspects of Netflix’s streaming service and the systems used to support the service.

Netflix has reportedly declined to agree to terms for a licence for its use of the Broadcom patents and technology, prompting Broadcom to file suit.

Netflix is allegedly causing substantial and irreparable harm to Broadcom and its subsidiaries, including those which sell semiconductor chips used in the set-top boxes that enable traditional cable television services, said the suit.

‘As a direct result of the on-demand streaming services provided by Netflix, the market for traditional cable services that require set-top boxes has declined, and continues to decline, thereby substantially reducing Broadcom’s set-top box business,” said the claim.

According to Broadcom, Netflix is relying on its technology for crucial aspects of the streaming service.

This includes the Netflix “systems used to ensure effective and reliable delivery of streaming content with minimal interruptions, to ensure the efficient use of Netflix server resources, and to encode Netflix streaming content in a format compatible with a large percentage of the client devices”.

“Broadcom relies on the patent system as an important part of its IP programme to protect the valuable technology and inventions resulting from its research and development efforts. The Broadcom entities and their related entities have tens of thousands of patents in the US and abroad,” added the technology company.

In addition to requesting an injunction, Broadcom has also asked the Californian court to award triple damages and reasonable royalties.

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