Netflix, Inc. v. DivX, LLC (Fed. Cir., February 13, 2026) 2024-1541

This episode concerns a legal opinion from the United States Court of Appeals for the Federal Circuit addresses a patent dispute between Netflix and DivX regarding streaming technology. The core of the conflict involves the interpretation of claim construction for a patent describing how playback devices locate and decrypt partially encrypted video. Originally, the Patent Trial and Appeal Board ruled in favor of DivX by narrowly defining where encryption information must be stored within a data stream. However, the appellate court reversed this decision, applying standard grammatical principles to conclude that the patent does not strictly require encryption data to be located within the requested video portions. Consequently, the court vacated the previous ruling and remanded the case, finding that Netflix’s evidence of prior art likely renders the patent claims obvious.

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