Netflix has fired back in its ongoing patent battle with Broadcom by filing a lawsuit against the company’s VMware subsidiary, targeting virtualization technologies. The complaint, filed in the Northern District of California on December 23, 2024, marks a departure from Netflix’s usual defensive stance on intellectual property matters.
Broadcom had initiated patent litigation against Netflix nearly five years ago, alleging that the streaming giant’s services had harmed its semiconductor business for set-top boxes. In response, Netflix has now asserted five patents, originally developed by HP, that relate to core virtualization technologies used by VMware.
The lawsuit accuses Broadcom and VMware of willful infringement, suggesting deliberate use of the patented technologies. This move represents a strategic shift for Netflix, which historically refrained from asserting its patents.
Broadcom has faced setbacks in its patent enforcement efforts, including the invalidation of a key streaming patent by the German Federal Patent Court. In the US, Netflix successfully challenged a Broadcom patent, further weakening Broadcom’s position.
Netflix’s choice of venue for the lawsuit, the Northern District of California, was influenced by the substantial presence of both parties in the district. Led by Baker Botts’s Rachael Lamkin, the legal team behind the lawsuit aims to accelerate settlement negotiations.
While Netflix’s current patent portfolio is limited to US assets, the impact of this legal action could have broader implications for the tech industry. As streaming services like Netflix clash with traditional technology providers like Broadcom, the dynamics of patent litigation in the sector are evolving.
The success of Netflix’s offensive patent strategy will depend on the technical merits of the virtualization patents and how it shapes the ongoing dispute between tech giants. This case could set important precedents for how emerging sector players defend against patent assertions from established companies.
Overall, Netflix’s countersuit against Broadcom reflects the changing landscape of patent disputes in the tech industry, where companies are increasingly leveraging intellectual property as a strategic tool.
