
Broadcom vs. Netflix in the Munich Regional Court: HEVC/H.265 Patent Dispute with Implications for 4K Streaming
We have previously reported on Netflix’s patent disputes.
The Broadcom v. Netflix patent dispute before the Munich I Regional Court centres on the use of the HEVC/H.265 video codec in the transmission of Ultra HD content. The focus is on European Patent EP 2 575 366, which protects key techniques for the prediction and subdivision of coding units in video coding.
HEVC/H.265 has established itself as the industry standard for compressing UHD and 4K video because it enables significantly more efficient data reduction compared to H.264/H.264. Streaming services such as Netflix typically use HEVC to deliver 4K content to end devices with limited bandwidth while maintaining high image quality. At the same time, alternative codecs are gaining prominence: AV1, a royalty-free codec that is not yet universally supported by hardware, and H.264 as a fallback option with higher bandwidth requirements.
The lawsuits against Netflix before the Munich I Regional Court
Broadcom accuses Netflix of using patent EP 2 575 366 without a corresponding licence when streaming HEVC video content in Germany. The dispute between the companies dates back to at least 2018 and involves proceedings in several jurisdictions, including Germany, the Netherlands, and the U.S. In Munich, the proceedings were conducted under case numbers 7 O 12200/21 and 7 O 1971/22, among others.
Ruling: Patent Infringement and Preliminary Injunction
In September 2023, the Munich Regional Court I found that Netflix infringed the Broadcom patent when transmitting HEVC video streams. Consequently, the court issued a preliminary injunction requiring Netflix to cease certain streaming services based on HEVC/H.265 in Germany. The injunction is structured such that Netflix may no longer offer content that utilizes the patented technology without a licence, which effectively affects Ultra HD or 4K streams.
Enforcement and Administrative Fine Against Netflix
Following the judgment, the Munich Regional Court I apparently found that the injunction had not been fully complied with: Netflix continued to provide HEVC streams. At Broadcom’s request, the court therefore imposed an administrative fine in the millions for culpable violation of the injunction. This step underscores the consistent enforcement of patent judgments in German civil proceedings and the significant practical importance of preliminary injunctions in the technology and IP sectors.
Validity of the Broadcom Patent Before the Federal Patent Court
Parallel to the infringement proceedings, the dispute over the validity of patent EP 2 575 366 was ongoing before the Federal Patent Court. In a preliminary assessment, the Federal Patent Court concluded that Broadcom’s HEVC/H.265 patent is valid. This preliminary opinion—typical for invalidity and opposition proceedings—strengthens Broadcom’s position in the infringement proceedings as long as there is no final invalidation or limitation of the patent right.
Technical Scope of EP 2 575 366
EP 2 575 366 relates to methods for predicting and partitioning coding units in video coding, as implemented in particular in HEVC/H.265. The claimed features are typical core functions of modern video compression methods that are essential for the efficient delivery of 4K streams. For streaming service providers, this means that implementing such functions without the appropriate licences carries a significant risk of infringement.
Possible implications for Netflix customers in Germany
The decision by the Munich Regional Court (LG Munich I) could result in Netflix no longer being permitted to offer certain 4K content in Germany based on HEVC/H.265 unless a licensing agreement is in place with Broadcom or alternative codecs are used. In practice, several scenarios are conceivable: Switching to AV1, provided end devices support it; reverting to H.264 with higher bandwidth; or temporary restrictions on UHD content. For users, this could mean reduced image quality, higher data rates, or limited availability of selected 4K titles, although the specific implementation will depend largely on Netflix’s technical and licensing decisions.
Context: Patent Strategy, Standardization, and the Streaming Ecosystem
The Broadcom v. Netflix case illustrates how central standard-essential patents and video codecs have become to the business model of streaming platforms. Patent holders strategically leverage their portfolios to build licensing pressure, while implementers must choose between licensing, design-around solutions, and open alternatives such as AV1. Germany, and specifically the Regional Court of Munich I, remains a preferred venue for international patent disputes in the field of communications and video technologies due to its swift and effective injunction practice.
Sources:
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- https://www.heise.de/news/Einstweilige-Verfuegung-Netflix-bekommt-Aerger-wegen-H-265-Streams-9317949.html
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