Broadcom, manufacturer of semiconductor chips for cable set top boxes, have recently accused Netflix of violating their patents and filed a lawsuit against the streaming company last week. It has been alleged that Netflix have infringed eight patents, including data transmissions and video playback.
The lawsuit reads that a decline in Broadcom’s business has occurred, due to the high demand for the streaming services provided by Netflix. Furthermore, the chip manufacturers insist that they previously informed Netflix of the alleged infringement, however they decided to avoid contributing towards any negotiations with Broadcom. Therefore, the latter company were left with no choice other than to take legal action, in order to protect their investment in research and development.
In more recent news, Broadcom was ordered, by a jury, to pay a hefty $270 million for the infringement of patents belonging to Caltech, a private doctorate-granting research university in California. Apple was also ordered to pay the large sum of $837 million to the company, as it was found that some of Apple’s devices made use of Broadcom chips that relied on the University’s patented wireless data technology.
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