Netflix, Hulu Challenge of Streaming Tech Patent Gets New Review

An administrative tribunal must take a second look at a video-streaming technology patent challenged by Netflix Inc. and Hulu LLC, the Federal Circuit ruled Wednesday.

The opinion reverses a Patent Trial and Appeal Board decision that found DivX LLC’s patent—which the company asserted against the streaming media giants in federal district court—is valid.

“Because the Board legally erred in its obviousness analysis, and the error cannot be regarded as harmless, we vacate and remand,” Judge Richard G. Taranto wrote.

DivX originally sued Netflix and Hulu in California federal court, alleging that the companies’ “video streaming success depends upon the technical ...