Broadcom accuses Netflix of infringing upon patents relating to video playback, data transmission

Broadcom in its lawsuit claimed Netflix has built its familiar video streaming business, in part, on the Broadcom Entities’ patent technology.

Netflix faces a patent lawsuit from the chip making company Broadcom (REUTERS)

Broadcom, one of the top chip manufacturers, has reportedly filed a lawsuit against Netflix for infringing upon its patents.

The chipmaker in its lawsuit has alleged that Netflix violated its as many as eight patents relating to how its video playback and data transmission technologies work, according to a Variety report. Broadcom also said that Netflix's popularity has also led to decline in the sale of set-top-boxes which has further affected its chip business.

"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," Broadcom said in the suit.

The chip making company further alleged that it had informed Netflix about the patent infringements. "Representatives of the Broadcom Entities have repeatedly attempted to engage Netflix in licensing discussions. As part of these attempts, the Broadcom Entities informed Netflix of its infringement of the patents asserted in this complaint…," added the lawsuit.

On filing the lawsuit, Broadcom claimed it was left with no other choice to protect their [Broadcom Entities] rights and their investment in the research and development of novel technologies.

Earlier this year, Apple and its chip partner Broadcom lost a patent lawsuit against California Institute of Technology. A US court ordered Broadcom to pay $270.2 million on violating patents of Caltech. Apple was ordered to pay $837.8 million. Apple said it will appeal against the verdict.

"While we thank the members of the jury for their service, we disagree with the factual and legal bases for the verdict and intend to appeal," Broadcom said in a statement.