A court in Germany has ruled that Netflix Inc. has been infringing on a Broadcom Inc. patent related to video coding, Broadcom Inc. said on Monday.
As a result, the District Court of Munich issued an injunction that requires Netflix to “cease and desist” all further infringements of the patent in Germany.
Broadcom’s stock
AVGO,
slipped 0.4% in premarket trading, while Netflix shares
NFLX,
gained 0.6%. The gain in Netflix shares comes as the agreement reached over the weekend by the Hollywood writers union gave a boost to streaming-video provider stocks.
“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, general manager of Broadcom’s intellectual property and licensing division.
Broadcom noted that it has been engaged in a patent dispute with Netflix since 2018, with Broadcom accusing Netflix of infringing on numerous U.S., German and Dutch patents as part of its provision of video-streaming services.
On Sept. 19, Broadcom said the German court ruled that Netflix is infringing on the “366 Patent through its transmission of HEVC [high-efficiency video coding] video, which Netflix employs to provide Ultra HD content to its users.”
There were no financial terms disclosed in Broadcom’s release about the court ruling.
Netflix’s stock has rallied 28.8% year to date and Broadcom shares have run up 48.3%, while the S&P 500
SPX
has advanced 12.5%.
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