VMware, a subsidiary of Broadcom, is being sued by Netflix for having infringed its patents on system virtualization.
Tl;dr
- Netflix is suing Broadcom and VMware, accusing them of infringing its patents related to virtual machines used in their vSphere platform.
- This new lawsuit adds to a long-standing legal dispute between the two companies, which also clash over video streaming patents.
- Broadcom’s acquisition of VMware in 2023 could complicate the situation, with potentially broader legal issues for the tech giants.
Patents on virtualization called into question
Netflix accuses VMware, a subsidiary of Broadcom, of infringing five of its patents related to virtual machines. These allow the operating system of one computer to run on another, through virtualization. The complaint points out that VMware’s cloud software, specifically its vSphere virtualization platform, infringes Netflix’s patents relating to communication between these virtual machines. Netflix has demanded unspecified damages to compensate for the harm it believes it suffered as a result of this intellectual property violation.
A tense legal history
This new trial comes as part of a long legal battle between Netflix and Broadcom. Since 2018, the two companies have been in conflict over patents on video streaming technology. Broadcom accuses Netflix of infringing on its video streaming patents. These cases have already resulted in legal proceedings in several countries, including the United States, Germany and the Netherlands. The trial regarding these accusations of video patent infringement between Broadcom and Netflix is scheduled for next summer.
VMware in the viewfinder
Broadcom’s $69 billion acquisition of VMware in 2023 strengthened the company’s position in cloud computing and virtualization infrastructure. However, this acquisition appears to have brought more attention to possible patent violations on VMware’s part. Netflix’s lawsuit could impact how Broadcom and VMware manage their cloud computing businesses in the future. Indeed, if Netflix wins this lawsuit, it could prompt other companies to re-evaluate the use of similar technologies in their products.
silence and speculation around the trial
No statement has been made by Netflix regarding its complaint. However, Broadcom spokespeople also did not immediately respond to requests for comment. This lack of reaction has left room for speculation about the intentions of the two companies. Netflix is now waiting for the court to rule on the case, which will proceed in the US District Court for the Northern District of California, under Docket No. 3:24-cv-09324. The verdict in this case could have significant repercussions on future transactions between technology giants and the management of their patent portfolios.