Netflix has achieved a landmark legal victory against Broadcom (formerly Avago) following dual rulings from German and Dutch courts, effectively neutralizing Broadcom’s key patent claims related to video coding technology. The decisions, announced in mid-December 2025, mark a critical turning point in a years-long patent dispute between the streaming giant and the semiconductor firm, with implications for standard-essential patent (SEP) enforcement in the digital communication sector.
German Federal Court Invalidates Broadcom’s Core Patent EP 366
On December 17, 2025, the German Federal Court of Justice (Bundesgerichtshof) delivered a final blow to Broadcom by rejecting its appeal against a nullity ruling by the German Federal Patent Court (Bundespatentgericht). The case centered on Broadcom’s European Patent No. EP 366, which protects a video coding technology integral to the High Efficiency Video Coding (HEVC) standard—technology Broadcom alleges Netflix uses to encode and stream Ultra HD content.
The Federal Patent Court had initially found EP 366 valid in a preliminary opinion but reversed course in 2024, declaring the patent invalid for lacking both inventive step and novelty (Case ID: 2 Ni 4/22). A five-judge panel at the Federal Court of Justice, led by Presiding Judge Klaus Bacher (joined by Fabian Hoffmann, Hermann Deichfuß, Nina Marx, and Hartmut Rensen), upheld this invalidation on December 17, setting the dispute value at €30 million. The court’s decision permanently bars Broadcom from enforcing EP 366 against Netflix, averting pending injunction and compulsory investigation proceedings in Germany.
Dutch Court Dismisses Broadcom’s Infringement Claim Over EP 2 575 366
Two days prior, on December 15, 2025, the District Court of The Hague rejected Broadcom’s infringement lawsuit against Netflix, which was based on a related patent, EP 2 575 366 (Case ID: C/09/629182 / HA ZA 22-409). Broadcom had accused Netflix of infringing this HEVC-related patent and sought an injunction to halt its use of the technology.
In a ruling by Judges Edgar Brinkman, Hugo van Heemstra, and Arjen Hooiveld, the court found Broadcom failed to provide sufficient evidence of direct infringement. Specifically, the judges noted that Broadcom could not demonstrate Netflix’s unauthorized use of the patented coding method, nor establish that Netflix’s streaming practices violated the patent’s claims. The court emphasized that Broadcom’s allegations lacked factual and legal substantiation, dismissing the claim in full. Broadcom retains the right to appeal the decision.
Background: A Long-Running Patent Dispute
The conflict dates to 2018, when Broadcom initiated litigation against Netflix over multiple video-coding patents, including those tied to HEVC—a global standard for Ultra HD video compression. In September 2023, the Munich Regional Court ruled in Broadcom’s favor, issuing an injunction prohibiting Netflix from using EP 366. Netflix responded by implementing a technical workaround, which it argued eliminated reliance on the patent. Broadcom contested this, leading the Munich court to fine Netflix €7.05 million in December 2023 for alleged non-compliance. Netflix appealed that penalty, but the Federal Court’s recent invalidation of EP 366 is expected to terminate these parallel proceedings.
Key Legal and Industry Implications
The rulings underscore two critical trends in SEP disputes: the importance of patent validity challenges and the need for robust evidence of infringement. For Netflix, the victories eliminate immediate risks of injunctions and damages tied to EP 366 and EP 2 575 366. However, three other patent-related cases remain pending at the Hamburg Regional Court, signaling ongoing legal battles.
The case also highlights the role of specialized counsel: Bart van den Broek, a prominent Dutch patent litigator at Quinn Emanuel (who represented Netflix in The Hague), is set to join the Unified Patent Court (UPC) after leaving his Amsterdam post at Rembrandt Tower. His involvement in securing Netflix’s win adds to his reputation as a leading figure in European IP law.
Next Steps
With EP 366 invalidated in Germany and the Dutch infringement claim dismissed, Netflix has neutralized Broadcom’s primary leverage in these jurisdictions. The streaming giant continues to defend against remaining patent assertions in Hamburg, while Broadcom faces potential reputational and financial setbacks from the dual losses.
Industry observers view the rulings as a check on aggressive SEP enforcement, particularly in sectors like digital communication where standards are central to innovation. As the UPC gains traction, such cases may increasingly shape global patent litigation strategies.
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