Roku Faces Patent Infringement Lawsuit in Brazil Over HEVC/H.265 Technology

Access Advance Patent Owners Initiate Proceedings Against Roku Subsidiary in Brazil

Access Advance LLC announced on October 14, 2025, that patent owners in its HEVC Advance and Video Distribution Patent Pools have initiated patent infringement proceedings in the Rio de Janeiro State Court in Brazil against Roku Brasil Servicos de Apoio de Produtos Eletronicos LTDA, a Brazilian subsidiary of Roku, Inc. The lawsuit, filed under case number 3016299-22.2025.8.19.0001, alleges infringement of patents essential to the HEVC/H.265 digital video coding standard.

Details of the Patent Infringement Claim

The complaint asserts that Roku's devices, operating system, and streaming service incorporate HEVC/H.265 technology without proper licensing. This legal action represents a notable development for Access Advance, as it is the first from a patent owner in its Video Distribution Pool to target content streaming services directly, a pool that launched earlier in 2025. Furthermore, it marks the first instance within Access Advance's programs to allege infringement of both devices and content streaming services in the same action. Access Advance states its commitment to providing a "one-stop-shop" for companies implementing HEVC across various products, implying that this lawsuit underscores the necessity of adherence to patent licensing for the comprehensive use of video coding technologies.

Market Sentiment and Corporate Response

The market sentiment surrounding such patent infringement lawsuits is typically one of uncertainty, often leaning bearish for the defendant due to potential legal costs and liabilities. While Roku's stock (ROKU) has demonstrated volatility, with significant movements recorded in recent periods, any direct market reaction to this specific lawsuit announcement has not been clearly isolated. The company's shares recently experienced an increase, but this was attributed to unrelated product announcements and analyst commentary earlier in the month, underscoring the stock's inherent volatility. This lawsuit, however, introduces a new layer of legal and financial risk that could influence investor perception.

Broader Implications for Roku and the Streaming Sector

This lawsuit could lead to substantial legal costs, potential damages, or mandatory licensing fees for Roku, which would directly impact its profitability and market position, particularly within the growing Brazilian market. Such financial penalties could force Roku to re-evaluate its competitive pricing strategies. Beyond Roku, this action signals a broader trend where patent holders are increasingly asserting their rights against content streaming providers, recognizing the significant value derived from efficient video codecs. The Video Distribution Pool offers licenses for various video codecs, including HEVC, to streaming services, utilizing a fixed tiered pricing structure. Should Roku be found liable, it would face financial repercussions for past unlicensed use and ongoing licensing fees.

Access Advance's strategy to consolidate patent licensing for essential video codecs reinforces its position as a key patent administrator. By targeting a prominent player like Roku, Access Advance demonstrates its global enforcement capabilities and commitment to ensuring a "level playing field" for its existing licensees. This aggressive enforcement could compel other non-licensed entities to join the patent pool, expanding Access Advance's revenue streams and strengthening its market presence. The prior dismissal of Roku's attempt in a U.S. court to compel a global fair, reasonable, and non-discriminatory (FRAND) royalty rate against Access Advance further solidifies the patent pool's stance, suggesting that litigation is not an alternative to good-faith licensing negotiations.

Expert Perspective

Peter Moller, CEO of Access Advance, articulated the company's position:

"When companies infringe patents, it undermines the entire intellectual property system and stifles innovation. The decision by certain patent owners in our HEVC Advance and Video Distribution Patent Pool to initiate legal action underscores the importance of respecting patent rights, particularly in global markets such as Brazil, not only in devices, but also in the services, such as streaming, that create significant additional value by the use of these technologies."

Outlook and Factors to Monitor

Moving forward, market participants will be closely monitoring the developments of the Brazilian lawsuit, including any potential injunctions, damages awards, or licensing agreements. The outcome will have direct implications for Roku's operational costs and competitive positioning in Brazil and potentially other international markets. Furthermore, this case highlights the increasing legal scrutiny facing the broader Streaming Services Sector and Consumer Electronics Sector regarding patent compliance. The evolving landscape of patent enforcement for video codecs will likely lead to increased licensing costs for industry players, which could ultimately influence their profitability and pricing models to consumers. Companies operating globally in digital content and device manufacturing will need to assess their intellectual property licensing strategies across all offerings.