Disney faces patent infringement suit over Hulu, Disney+, ESPN video coding

Disney is accused of using coding technology it has no licensing for to run its streaming platforms.WILMINGTON, Del. (CN) — When you infringe upon a star, your streams lead to suits.A Delaware-based patent holder sued The Walt Disney Company and several of its subsidiaries on patent infringement claims, saying the mass media conglomerate’s streaming empire relies on video coding technology it has no right to use.The lawsuit centers around four U.S. patents owned by Tagivan, all of which relate to technology allowing for the transcoding, decoding and encoding of data. These coding technologies allow for more efficient storage, transmission and processing of information.According to Tagivan, Disney engaged in negotiations for a patent licensing agreement beginning in 2024, as the media conglomerate sought use of a patent pool containing Tagivan’s patents-in-suit.Licensing negotiations stalled and an agreement was never reached, Tagivan claims.Despite failure to strike a deal, Tagivan says Disney made unauthorized use of the patents, using them to enhance its streaming services without paying Tagivan a cent.“Disney relies on Tagivan’s innovations to efficiently deliver high-quality video to users throughout the United States and the world,” Tagivan says in its complaint, filed Tuesday. “While other companies have recognized the value of Tagivan’s portfolio and taken licenses, Disney continues to use Tagivan’s technology without a license, thereby obtaining an unfair competitive advantage and failing to compensate Tagivan.”The streaming services that have unlawfully used Tagivan’s patents include Disney+, Hulu, Hulu Live, ESPN Select and ESPN Unlimited, Tagivan says, claiming the purported infringement stretches as far back as six years ago.Furthermore, Tagivan calls the media giant’s purported patent infringements intentional, accusing Disney and its subsidiaries of “encourag[ing] direct infringement, not mere passive ownership or receipt of revenue.”“Each defendant engaged in its inducement with knowledge of the patents-in-suit, actual awareness of the patent allegations, or deliberate avoidance of confirming whether the technology was patented,” Tagivan says in its complaint. “Each defendant intended the platform conduct to take place and intended its customers or affiliates to use the systems as alleged.”“The subscriptions, applications, shared systems and technical services are built to make the accused streaming activity ongoing and repeatable,” Tagivan adds. “The defendants selected the products, services, commercial pathways and technical arrangements that enable the accused streaming activity.”Tagivan seeks actual and enhanced damages to be determined at trial.However, Tavigan isn’t the only company claiming patent infringement by Disney.On Oct. 7, South Korea’s Electronics and Telecommunications Research Institute sued The Walt Disney Company in Delaware federal court, claiming the House of the Mouse infringed its video coding patents by failing to strike a licensing deal.And in February 2025, technology research and development company InterDigital sued Disney across several countries over unlicensed use of its patented video coding and streaming patents. These suits proved overwhelmingly successful for InterDigital, as the company has obtained several injunctions across the European Union and Brazil.In response, Disney filed an antitrust lawsuit against InterDigital in Delaware federal court in August 2025, accusing the company of monopolizing video streaming technology. That prompted the Justice Department to issue a statement in October 2025 urging the court to handle the case with caution; a Delaware federal judge paused proceedings in September 2026 following a request from InterDigital.Tagivan and The Walt Disney Corporation could not be reached for comment.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads