The Court of Justice of Rio de Janeiro ruled that Netflix must stop using a certain video compression technology.
The streaming giant has been sued by DivX, the US-based software developer that owns the patents that Netflix is infringing.
The sentence was handed down last week by the judges of the 24th Civil Chamber of the Court of Justice of Rio de Janeiro.
The court order determines that if Netflix does not stop using the patented technology, will be fined BRL 50,000 (about 9,000 euros) per day of violation.
The technology in question is very important to Netflix and directly benefits its users.
Every time you watch a movie or series in Ultra HD or 4K resolution, data compression technology kicks in and makes it possible for the video to be streamed using the least amount of bandwidth.
The streaming platform has defended itself by saying that it does not use proprietary DivX technology. But then he says that disrupting the understanding of DivX video will cause “enormous harm” to the company and users. So the argument is really contradictory.