RJ Justice Demands Change at Netflix; daily fine is BRL 50,000

Netflix doesn’t have a good time. In addition to the drop in subscribers, recent mass layoffs in the US and a new package with ads, the Brazilian subsidiary is now dealing with the return of a problem from last year.

An injunction from the Rio de Janeiro Court of Justice requires the service to stop using the high-definition video compression technology called DivX. Otherwise, you will receive a fine of R$ 50 thousand per day. The court order had already been overturned by Netflix in 2022, but it came back into effect.

The streaming platform would be taking advantage of the technology without the proper license, protected in Brazil by registration with the National Institute of Intellectual Property since 218.

Just like last year, Netflix denies the use of DivX, but five technical opinions presented to the TJRJ by the software developer were understood as contrary evidence.

Carlos Aboim, attorney for the divxclaims that “going to court was the resource found to protect new investments in the development of this and new technologies”.

Netflix says that it will have great losses with the decision of the TJRJ but that it should not affect the quality of the image and streaming for its subscribers.

*With information from Juristas.com

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