Broadcom, whose semiconductor chips can be found in many set-top boxes around the world, has filed a patent infringement lawsuit against Netflix.
The US chipmaker is alleging that Netflix has infringed eight of its patents that cover video playback and data transmission. In a story first reported in Variety, Broadcom says the infringement by the streamer has lead to an increase in cord cutting and with it a decline in the demand for its product.
“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,” says Broadcom in its filing, adding that Netflix has failed to engage with the company.
Netflix has so far declined to comment.
In June 2019, The European Commission opened a formal antitrust investigation to assess whether Broadcom may be restricting competition through exclusivity practices, in breach of EU rules.
The Commission intends to impose interim measures during the investigation with regard to TV and modem chipsets markets.