Netflix sues VMware for patent infringement regarding virtual machine operation
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Streaming giant Netflix has filed a lawsuit against IT giant VMware and its parent company Broadcom, seeking damages and other compensation for infringing five patents related to cloud-based virtualization technology.
2024.12.23 FINAL Complaint CASE 1.docx - NETFLIX BROADCOM LAWSUIT complaint.pdf
(PDF file) https://fingfx.thomsonreuters.com/gfx/legaldocs/mopawoybjpa/NETFLIX%20BROADCOM%20LAWSUIT%20complaint.pdf
Netflix sues Broadcom's VMware over US virtual machine patents | Reuters
https://www.reuters.com/legal/litigation/netflix-sues-broadcoms-vmware-over-us-virtual-machine-patents-2024-12-23/
VMware, the company sued this time, is a company that holds an overwhelming share of the virtualization software industry and was acquired by Broadcom in 2023 for a huge amount of $ 61 billion (about 9.6 trillion yen).
Broadcom acquires VMware for over 7 trillion yen, also announces assumption of over 1 trillion yen in debt - GIGAZINE
The product in question, vSphere, is a platform for deploying and managing virtual machines and plays a key role in enterprise cloud computing infrastructure.
According to the complaint filed on December 23 in the U.S. District Court for the Northern District of California, Netflix alleges that Broadcom and VMware are unfairly using Broadcom's patented technology related to virtual machine resource monitoring, optimization, and remote management. Specifically, the complaint covers five patents related to technology for accurately determining virtual machine CPU usage, technology for optimizing virtual machine placement to reduce energy consumption, and technology for managing multiple virtual machines from a unified interface.
Netflix claims that Broadcom is jointly liable for VMware's patent infringement from November 2023, when Broadcom acquires VMware. Netflix accuses Broadcom's senior executives of being aware of the history of VMware's patent litigation and of willful and malicious infringement. In addition to damages for patent infringement, it is seeking compensation for attorney's fees and an injunction against future infringement.
By Jamie
There is a possibility that Broadcom and VMware will fight back against Netflix's lawsuit by asserting that the patents are invalid, and as the importance of virtualization technology increases with the spread of cloud computing, this could become a new spark in the battle for dominance in the cloud industry. Attention is focused on the outcome of this all-out showdown between Netflix, which has led technological development, and the major IT companies that are in a position to utilize it.
Another patent dispute between Netflix and Broadcom over video streaming technology has been ongoing since 2018. The dispute is ongoing in three countries, California, Germany and the Netherlands, with the US lawsuit scheduled for trial in June 2025.
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