Streaming giant Netflix is said to have violated patents with its 4K streams. The case is currently before the Munich Regional Court. What does this mean for Netflix customers?
Netflix is the leading streaming service worldwide. On the one hand, this is due to his many exclusive in-house productions. On the other hand, the technology and availability are also more sophisticated than the competition. You can use the Netflix app across the board on almost all devices and get lots of content in 4K quality. With the latter, Netflix is said to be partially violating a patent. TECHBOOK editor Marlene Polywka explains the situation and assesses the effects.
This is what the 4K dispute at Netflix is about
The California-based company Broadcast is suing Netflix. Specifically, it’s about the H.265 codec or High Efficiency Video Coding (HEVC). Such a codec is important for encoding and decoding data, in this case video content. HEVC is now an international standard specifically for video compression, which, among other things, allows content to be transmitted over the Internet in the comparatively high 4K resolution.
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Broadcom is now accusing Netflix of violating the patent for H.265 and other patents. The company announced this in a message to its investors. The dispute has been going on since 2018; further lawsuits are ongoing in the USA and the Netherlands.
The paradox: Broadcom and Netflix have joined forces with other large companies such as Google and Amazon to form the Alliance for Open Media. The codec AV1 was developed together. This is license-free and specifically intended as a replacement for HEVC – and Netflix is actually already using it.
Is Netflix no longer allowed to use H.265 at all?
At least according to the Munich 1 Regional Court, Netflix is allowed to use H.265 or the patent EP2575366 no longer use. According to Broadcom, this is important for H.265 video coding. According to Broadcom, an injunction has already been obtained against Netflix in this regard.
“Netflix has built a robust video streaming business relying on Broadcom’s patented technology to deliver content to its users, and Broadcom is pleased to have this recognized by the German court,” said Mark Terrano, Vice President and General Manager of Broadcom’s Intellectual Property and Licensing Department. Netflix has not yet officially commented on this.
Users of newer devices (built in 2022 and 2023) do not have to worry about switching to AV1. Even Apple implemented the standard starting with its new iPhone 15 Pro, although Apple TVs still have a problem in this regard. Web browsers such as Google Chrome and Microsoft Edge also already support AV1
That’s what TECHBOOK means
Consequences unclear
“It is difficult to assess exactly how acute the impact of the verdict will be. Theoretically, Netflix is no longer allowed to use HEVC – at least H.265. Technically, the streaming service probably cannot remove the codec from one day to the next. Some devices cannot yet implement the newer AV1 standard. These would then no longer be able to receive any content in 4K until the final changeover.
I think it is impossible for Netflix to remove the affected content from its offering or generally only make it available in lower quality. It is more likely that the provider will then pay a retroactive penalty.
In addition to the AV1 mentioned, an alternative could also be its predecessor H.264. However, this requires a larger bandwidth, which could also be a problem for some users. Affected users could demand that Netflix reduce subscription fees. Because of Netflix’s subscription model, you can’t simply switch to the lower tariff. This also provides fewer simultaneous streams, which is particularly important for families who use one account together.” – Marlene Polywka, editor