Context: In March 2020, Broadcom (Avago) filed the first of several patent infringement lawsuits against Netflix, asserting video streaming patents. More than five years and various court decisions later, Netflix still isn’t paying patent royalties to Broadcom. That passage of time, in and of itself, makes it a disappointing situation for Broadcom. But last year Netflix started to retaliate with countersuit a against Broadcom and its VMware subsidiary in the United States District Court for the Northern District of California, alleging that the companies had infringed five of its former HP patents (December 24, 2024 ip fray article). Last month, Netflix brought a second countersuit, asserting two more ex-HP patents and, for the first time, a patent the streaming company had acquired from Rockwell Automation (April 30, 2025 ip fray article).
What’s new: Within about a month of filing the original second complaint, Netflix has already amended it. On Thursday (May 22, 2025), Netflix replaced its 61-page April 29 complaint with a 120-page one that is even more elaborate and adds two more ex-Rockwell patents to the case.
Direct impact: After more than five years of suing without a result, and in the face of countersuits that it now has to defend against, Broadcom may at some point give consideration to either a zero-zero cross-license or a royalty-bearing one on terms far below its original expectations, which were presumably based on a quick win.
Wider ramifications: Video streamers are increasingly on the receiving end of patent royalty demands, and Netflix is a prime target. Patent holders who also make products and/or offer services will now have to take into consideration that suing Netflix is no longer a one-way street (on top of never having been a cakewalk).
Here’s the amended complaint:
These are the two new patents-in-suit (going from three to five in this second case):
- U.S. Patent No. 7,447,931 (“Step time change compensation in an industrial automation network”)
- U.S. Patent No. 7,656,751 (same title as the ‘931 patent)
Those patents were apparently brought to Broadcom’s attention in an April 15, 2025 notice letter that also listed the ex-Rockwell patent asserted in the original second complaint. That complaint was filed two weeks later, but apparently Netflix decided to double down and amend the complaint so as to assert two more patents.
Netflix has the resources, and may have the determination, to acquire patents from even more sources than HP and Rockwell for defensive, retaliatory purposes. At some point Netflix might even seek injunctions against Broadcom, particularly in Europe.
According to Netflix, “Broadcom has been involved in no less than 45 patent cases since 2002.” And that number is just about Broadcom itself, not including various affiliate entities. It may be a U.S.-only number, too.
Judge and counsel
This second Netflix v. Broadcom case has recently been assigned to District Judge Trina L. Thompson.
Netflix is being represented by a team at Baker Botts: Rachael Lamkin, Kira Gill, Lute Yang, Linus Nemiroff, Lauren J. Dreyer, Megan White, Matthew Chuning, and C. Stephen Maule.