Netflix ordered by court to stop using video codec ‘H.265 (HEVC)

Video streaming service Netflix lost a patent infringement lawsuit by semiconductor manufacturer Broadcom and was ordered to stop using the video codec H.265 (HEVC).

Netflix Loses Another Ruling in German HEVC Patent Dispute With Broadcom | Next TV.

Netflix and Broadcom have been in a legal battle over patents related to H.265 HEVC since 2018, and have filed lawsuits not only in Germany but also in the United States and the Netherlands. HEVC is a video codec that is up to 50% more efficient than Advanced Videocoding AVC: H.264 , and data shows that 42% of video developers are using HEVC as of 2018.

In a September 2023 judgment, the German court in Munich ruled that Broadcom’s HEVC patent EP 2 575 366 is valid. ‘EP 2 575 366′ is a patent that covers the main functions of the HEVC video codec. The ruling orders Netflix to stop using HEVC when streaming 4K resolution videos.

Achtung, Baby: Netflix Loses Patent Dispute to Broadcom in Germany, Ordered to Stop Using HEVC to Stream 4K | Next TV.

However, when Netflix failed to comply with the Munich court’s injunction, Broadcom sought a ruling from Germany’s Federal Patent Court. In this case, the Federal Patent Court has issued a preliminary judgment that Broadcom’s EP 2 575 366 is valid.

Broadcom issued a statement regarding the Federal Patent Court’s ruling: “Under Article 890 of the German Civil Procedure Code, there are two penalties for violating an injunction.” One of the following penalties will apply to the respective.

Netflix will be fined up to 250,000 euros (approximately 40 million yen) each time it sends video streaming using HEVC to German subscribers Up to six months’ imprisonment for members of the new company’s board of directors.

The German Federal Patent Court is scheduled to issue a final judgment on the lawsuit on July 18, 2024, following oral arguments. Gigazine