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Netflix is Being Sued for Allegedly Violating Patents

Netflix N LogoChipmaker Broadcom is suing Netflix, claiming the video streaming service infringes on several patents that cover key parts of Netflix’s platform. In all, Broadcom cites eight patents that deal with data transmission and video playback in a suit filed last week in California.

“Netflix has built its familiar video streaming business, in part, on the Broadcom Entities’ patented technology,” the suit alleges. “Netflix relies on this technology for crucial aspects of the Netflix streaming service.”

The suit also alleges that Netflix’s success has directly impacted sales of traditional cable services and set top boxes, which make up a big part of Broadcom’s chipmaking business.

“Netflix could not displace traditional cable television services, or could not so so as effectively, without the use of the Broadcom Entities’ patented technology,” the suit added.

Broadcom’s recent history of patent infringement suits has been marked by both wins and losses. Variety reported that the US International Trade Commission ruled against the company in its suit alleging patent infringement by smart TV makers Vizio and Sigma Designs. Elsewhere, Apple was ordered to pay $837.8 million to Broadcom, though the final outcome is still pending.

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