RJ Justice demands changes at Netflix; the daily fine is BRL 50,000

RJ Justice demands changes at Netflix;  the daily fine is BRL 50,000

Netflix is ​​not having a good time. Along with declining subscriber numbers, recent massive layoffs in the US, and a new package with ads, the Brazilian subsidiary is now facing a return of a problem from last year.

An injunction from the Court of Justice in Rio de Janeiro forces the service to stop using high-definition video compression technology called DivX. Otherwise, you will be fined R$50,000 per day. The court order had already been overturned by Netflix in 2022, but it has come back into effect.

The streaming platform would take advantage of the technology without the proper license, protected in Brazil by registration with the National Institute of Intellectual Property since 2018.

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

Carlos Aboim, lawyer for the divxclaims that “taking the courts has been the resource found to protect new investments in the development of this technology and new technologies”.

Netflix says it will face big losses with the TJRJ’s decision but it shouldn’t affect picture and streaming quality for its subscribers.

*With information from Juristas.com

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