Netflix Inc. has initiated a lawsuit against Broadcom Inc.'s cloud computing subsidiary, VMware, alleging violation of its patent rights. The lawsuit centers on VMware's use of 'virtual machines' that enable one computer to run another's operating software on a host computer.
The complaint specifically claims that VMware's cloud software infringes upon five of Netflix's patents related to various aspects of operating virtual machines. This legal action targets a core technology within Broadcom's recently acquired infrastructure software business.
This development introduces legal and financial uncertainty for Broadcom's VMware segment, potentially leading to costly litigation or licensing fees. The outcome could impact the profitability and strategic value of the VMware acquisition.
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