Broadcom Sues Netflix for Shrinking Cable Box Market
RandomFactor writes:
El Reg has the story on chipmaker Broadcom sueing Netflix for shrinking the set-top box market, which it claims could not be done without infringing its patents.
In a lawsuit [PDF] filed late last week in California, the San Jose-based Broadcom - which designs and sells chipsets used in millions of set-top boxes - argued that "Netflix has caused, and continues to cause, substantial and irreparable harm to the Broadcom Entities [that] sell semiconductor chips used in the set top boxes that enable traditional cable television services.
"Upon information and belief, 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."
The claim is that Netflix must have used Broadcom's "novel" patents to run its service
"Upon information and belief, Netflix could not displace traditional cable television services, or could not do so as effectively, without the use of the Broadcom Entities' patented technology"
Broadcom wants a jury trial, royalty fees, attorney fees, and damages.
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