{"id":1965,"date":"2025-03-04T10:10:53","date_gmt":"2025-03-04T10:10:53","guid":{"rendered":"https:\/\/ipfray.com\/?p=1965"},"modified":"2025-03-04T10:10:53","modified_gmt":"2025-03-04T10:10:53","slug":"an-attempt-to-distract-from-its-own-infringement-and-harass-broadcom-seeks-to-dismiss-netflix-countersuit-in-northern-district-of-california","status":"publish","type":"post","link":"https:\/\/ipfray.com\/staging1\/an-attempt-to-distract-from-its-own-infringement-and-harass-broadcom-seeks-to-dismiss-netflix-countersuit-in-northern-district-of-california\/","title":{"rendered":"An attempt to \u201cdistract\u201d from its own infringement and \u201charass\u201d: Broadcom seeks to dismiss Netflix countersuit in Northern District of California"},"content":{"rendered":"\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"border-width:1px\">\n<p><strong>Context:<\/strong> In March 2020, Broadcom (Avago) initiated a slew of lawsuits against Netflix over video streaming patents in the Northern District of California, alleging that the company\u2019s business of selling \u201csemiconductor chips used in the set top boxes that enable traditional cable television services\u201d was substantially and irreparably harmed by Netflix (<a href=\"https:\/\/www.documentcloud.org\/documents\/6810169-Broadcom-Netflix\/?q=declined&amp;mode=search\">PDF<\/a>). Broadcom\u2019s next suits were filed in other jurisdictions, such as Germany, but the company suffered several setbacks in 2024: a Bundespatentgericht (Federal Patent Court of Germany) decision declaring one of its enforced patents invalid (<a href=\"https:\/\/juris.bundespatentgericht.de\/cgi-bin\/rechtsprechung\/document.py?Gericht=bpatg&amp;Art=en&amp;Datum=2024&amp;Sort=3&amp;Seite=5&amp;nr=44262&amp;anz=298&amp;pos=76&amp;Blank=1.pdf\">PDF (in German)<\/a>) and a United States Court of Appeal for the Federal Circuit decision reviving (<a href=\"https:\/\/cafc.uscourts.gov\/opinions-orders\/22-1936.OPINION.7-23-2024_2355094.pdf\">PDF<\/a>) two challenges brought by Netflix. To round out the year, Netflix then filed a countersuit against Broadcom and its VMware subsidiary in the Northern District of California, alleging that the companies had infringed five of its former HP patents (<a href=\"https:\/\/ipfray.com\/after-almost-5-years-of-being-sued-by-broadcom-netflix-files-u-s-countersuit-over-former-hp-virtualization-patents-upc-filings-to-follow\/\">December 24, 2024 ip fray article<\/a>).<\/p>\n\n\n\n<p><strong>What\u2019s new:<\/strong> Broadcom yesterday brought a motion to dismiss Netflix\u2019s countersuit in the Northern District of California. The motion comes approximately a week after the same court declined to grant an earlier Broadcom motion seeking to relate the countersuit to Broadcom\u2019s own patent infringement suit in the Eastern District of Texas (which was stayed pending inter partes review proceedings regarding the patents-in-suit in March 2022).<\/p>\n\n\n\n<p><strong>Direct impact and wider ramifications:<\/strong> The court\u2019s decision to decline to relate the cases caused another dent in Broadcom\u2019s long-running enforcement campaign against Netflix. The company\u2019s motion to dismiss the countersuit therefore comes as no surprise \u2013 but it will be interesting to see whether the court grants it this motion or sides with Netflix again. The latter could make for an interesting turn in Broadcom\u2019s enforcement campaign, which Netflix has so far proven to be quite resilient and perseverant against.<\/p>\n<\/div>\n\n\n\n<p>This is the motion to dismiss Netflix&#8217;s countersuit:<\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/03\/25-03-03-NDCA24cv9324-Broadcom-motion-to-dismiss-Netflix-countersuit.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of 25-03-03 NDCA24cv9324 Broadcom motion to dismiss Netflix countersuit.\"><\/object><a id=\"wp-block-file--media-0a67b8a7-c71e-44ab-a2e1-83536da5ae7b\" href=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/03\/25-03-03-NDCA24cv9324-Broadcom-motion-to-dismiss-Netflix-countersuit.pdf\">25-03-03 NDCA24cv9324 Broadcom motion to dismiss Netflix countersuit<\/a><a href=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/03\/25-03-03-NDCA24cv9324-Broadcom-motion-to-dismiss-Netflix-countersuit.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-0a67b8a7-c71e-44ab-a2e1-83536da5ae7b\">Download<\/a><\/div>\n\n\n\n<p>In the motion, Broadcom claims that Netflix\u2019s lawsuit is a \u201cmeritless retaliatory case designed to gain leverage in connection with [the company\u2019s] rampant infringement of patents owned by Broadcom-related entities.\u201d<\/p>\n\n\n\n<p>The company notes that on November 25, 2024, Netflix acquired a portfolio of U.S. patents of \u201cdubious provenance\u201d from a company in the British Virgin Islands, which had in turn acquired the patents when they were cast off by the original owner, \u201clikely in a fire sale.\u201d Less than a month later, Netflix brought its case against Broadcom and VMware, accusing them of infringing the following five patents:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/patents.google.com\/patent\/US7779424B2\/en?oq=+7%2c779%2c424\">U.S. Patent No. 7,779,424<\/a> (\u201cSystem and method for attributing to a corresponding virtual machine CPU usage of an isolated driver domain in which a shared resource\u2019s device driver resides\u201d)<\/li>\n\n\n\n<li><a href=\"https:\/\/patents.google.com\/patent\/US7797707B2\/en?oq=7%2c797%2c707\">U.S. Patent No. 7,797,707<\/a> (same family and title as the \u2018424 patent)<\/li>\n\n\n\n<li><a href=\"https:\/\/patents.google.com\/patent\/US8799891B2\/en?oq=+8%2c799%2c891+\">U.S. Patent No. 8,799,891<\/a> (\u201cSystem and method for attributing CPU usage of a virtual machine monitor to a corresponding virtual machine\u201d)<\/li>\n\n\n\n<li><a href=\"https:\/\/patents.google.com\/patent\/US8185893B2\/en?oq=8%2c185%2c893+\">U.S. Patent No., 8,185,893<\/a> (\u201cStarting up at least one virtual machine in a physical machine by a load balancer\u201d)<\/li>\n\n\n\n<li><a href=\"https:\/\/patents.google.com\/patent\/US8863122B2\/en?oq=8%2c863%2c122\">U.S. Patent No. 8,863,122<\/a> (\u201cRemote control of a plurality of virtual machines using actions facilitated through a graphic user interface\u201d)<\/li>\n<\/ul>\n\n\n\n<p>Broadcom urges the court to \u201crecognize this case for what it is\u201d:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201c&#8230;an attempt by Netflix to distract from its own infringement and harass Broadcom by forcing it to expend resources defending a worthless case. The Court can and should put an end to this case now, before it too expends its scarce resources indulging Netflix\u2019s folly.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Among other arguments, Broadcom claims that each of the five asserted patents is directed to ineligible subject matter under 35 U.S.C. \u00a7 101, and thus should now be held invalid on this basis in view of numerous Federal Circuit cases that have affirmed the dismissal of similar cases at the outset on eligibility grounds.<\/p>\n\n\n\n<p>It also argues that Netflix\u2019s complaint fails to plausibly allege the defendants\u2019 knowledge of infringement of any of the asserted patents, and fails to state a claim for willful infringement. Broadcom points to a Federal Circuit decision in<em> Lifetime Indus v. Trim-Lok<\/em>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cFor an allegation of induced infringement to survive a motion to dismiss, a complaint must plead facts plausibly showing that the accused infringer \u2018specifically intended [another party] to infringe [the patent] and knew that the [other party]\u2019s acts constituted infringement.\u2019\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The complaint does not allege that Broadcom and VMware were ever provided notice of infringement by Netflix, the seller from whom Netflix bought the patents-in-suit, or anyone else, it notes. \u201cNor does the complaint allege that [Broadcom and VMware] performed any type of infringement analysis of the patents on their own.\u201d<\/p>\n\n\n\n<p>Today\u2019s motion to dismiss this countersuit comes after a rather eventful past couple of years for Broadcom and Netflix. The plaintiff in December 2023 announced a \u20ac7.05 million contempt fine that the Munich I Regional Court had imposed on Netflix (<a href=\"https:\/\/www.broadcom.com\/company\/news\/product-releases\/61711\">December 22, 2023 Broadcom press release<\/a>) over its continued infringement of Broadcom\u2019s (Avago\u2019s) <a href=\"https:\/\/patents.google.com\/patent\/EP2575366B1\/en?oq=EP+2575366\">EP2575366<\/a> (\u201cSignaling of coding unit prediction and prediction unit partition mode for video coding\u201d), but soon saw the pendulum swing in the opposite direction.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Counsel<\/h4>\n\n\n\n<p>Netflix is being represented by <a href=\"https:\/\/www.bakerbotts.com\/people\/l\/lamkin-rachael\">Rachael Lamkin<\/a>, <a href=\"https:\/\/www.bakerbotts.com\/people\/d\/dreyer-lauren-j\">Lauren J. Dreyer<\/a>, and <a href=\"https:\/\/www.bakerbotts.com\/people\/w\/white-megan\">Megan White<\/a> at <a href=\"https:\/\/www.bakerbotts.com\/\">Baker Botts<\/a>. Broadcom is being represented by <a href=\"https:\/\/www.mckoolsmith.com\/professionals-Ramy_Hanna\">Ramy Hanna<\/a>, <a href=\"https:\/\/www.mckoolsmith.com\/professionals-Steven_Rizzi\">Steven Rizzi<\/a>, <a href=\"https:\/\/www.mckoolsmith.com\/professionals-Alan_Block\">Alan P. Block<\/a> and <a href=\"https:\/\/www.mckoolsmith.com\/professionals-Christopher_McNett\">Christopher McNett<\/a> at <a href=\"https:\/\/www.mckoolsmith.com\/\">McKool Smith<\/a>.<\/p>\n\n\n\n<p>In July 2024, the Federal Patent Court of Germany found Broadcom\u2019s <a href=\"https:\/\/patents.google.com\/patent\/EP2575366B1\/en?oq=EP+2575366\">EP2575366<\/a> invalid. As reported previously, invalidity works retroactively in Germany, therefore this overturned any past contempt fines. Later that month, the United States Court of Appeal for the Federal Circuit then revived two Netflix challenges to a Broadcom patent after the Patent Trial &amp; Appeal Board of the United States Patent &amp; Trademark Office had initially sided with Broadcom.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The motion to dismiss Netflix\u2019s counter-efforts comes a week after the company failed to be granted a motion seeking to relate that same countersuit to a case Broadcom initiated in the Eastern District of Texas (and which was stayed in 2022).<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[105,153,12],"tags":[],"class_list":["post-1965","post","type-post","status-publish","format-standard","hentry","category-avago-broadcom","category-netflix","category-patent-litigation"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/comments?post=1965"}],"version-history":[{"count":10,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1965\/revisions"}],"predecessor-version":[{"id":1979,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1965\/revisions\/1979"}],"wp:attachment":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/media?parent=1965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/categories?post=1965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/tags?post=1965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}