Netflix is indeed going through a time of turmoil as people are already fuming over issues regarding the price hike. Now, in the journey of losing hope, they are on track as Netflix is fighting it out in court regarding certain patents.
Broadcom has filed an official complaint against Netflix in a German court. The allegations surround the breaching of certain patents regarding HEVC/H.265 video coding.
HEVC, or H.265, is an advanced video compression standard that enhances video quality at the same bit rate compared to its predecessor, H.264. It achieves higher compression efficiency, crucial for video streaming and applications with limited bandwidth and storage. It is commonly used for Ultra HD content and streaming services.
The district court of Munich announced that Netflix infringed the patent on September 19th, 2023, and followed it up with further investigations regarding Netflix’s other infringement affairs.
The European patent in focus, EP 2 575 366 (referred to as the 366 Patent), encompasses crucial elements of digital video processing commonly utilized in HEVC video coding. The Munich District Court determined that Netflix contravened this patent by transmitting HEVC video for the provision of Ultra HD content.
Now, these acts will be followed up with hefty fines, but not big enough to even make a dent. The fine will sum up to €250,000 for each act of infringement.
Mark Terrano, Broadcom’s VP and GM of Intellectual Property and Licensing, expressed satisfaction that German courts acknowledge Broadcom’s patented contributions to video technology, crucial for thriving streaming services like Netflix.
2018 was the year when Netflix and Broadcom started this massive dispute regarding the patent infringement acts. The final verdict regarding the activity will be delivered next year, with the oral hearing scheduled for July 18, 2024.
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