A German court has ruled that Netflix Inc (NASDAQ:NFLX) has infringed a patent held by Broadcom Corporation (NASDAQ:AVGO), related to high-quality video streaming.
Netflix was told by the German court to cease and desist its use of Broadcom patented technologies.
It is the result of a patent dispute that’s been ongoing since 2018, over the ‘366 patent’, which relates to a specific video format (HEVC – high-efficiency video coding) used for ultra-high definition content.
“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 vice president and general manager of Broadcom’s Intellectual Property and Licensing Division.
The German court-ordered injunction prohibits Netflix from providing certain video streaming services utilizing Broadcom’s patented technology.
In New York, both Broadcom and Netflix stock remained largely unchanged.