Netflix (NFLX) has filed a lawsuit against Broadcom (AVGO) in a California federal court, accusing its cloud computing subsidiary, VMware, of infringing patents related to “virtual machines” technology. Virtual machines allow one computer’s software to run on a host computer. The lawsuit alleges that VMware’s cloud software violates five of Netflix’s patents concerning the operation of virtual machines.
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Furthermore, NFLX claims that VMware’s vSphere virtualization platform unlawfully uses patented innovations that enable virtual machines to run an operating system on a host computer. The streaming giant is seeking monetary damages, although the exact amount remains unspecified.
NFLX Has Long Been Embroiled in a Legal Battle with AVGO
This latest lawsuit adds a new chapter to the ongoing legal dispute between Netflix and Broadcom. Since 2018, the companies have been involved in a separate patent dispute over video-streaming technology, with cases pending in California, Germany, and the Netherlands. Broadcom’s lawsuit against Netflix claims the streaming giant has violated its patents related to video-streaming technology, with the U.S. lawsuit scheduled for trial next year.
What Is Netflix Stock Prediction?
Analysts remain cautiously optimistic about NFLX stock, with a Moderate Buy consensus rating based on 24 Buys, 10 Holds, and two Sells. Over the past year, NFLX has increased by more than 80%, and the average NFLX price target of $839.55 implies a downside potential of 7.9% from current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
