Broadcom, a leading manufacturer of semiconductor chips for cable set-top boxes, filed a patent infringement lawsuit against Netflix on Friday.
The chipmaker alleges that Netflix has infringed on eight patents dealing with video playback and data transmission. The suit claims that Netflix’s infringement has contributed to the rise of cord-cutting, which has driven down demand for Broadcom’s chips. “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 suit states.
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