Netflix Acquires HPE Patents – Will it Now Control the Social Media Algorithms?

In December 2024, Netflix launched a counter lawsuit against VMware, a subsidiary of Broadcom. This swift legal action came less than a month after Netflix acquired 14 patents from Regional Resources. It is a corporate trust firm that had previously obtained these assets from Hewlett-Packard Enterprise (HPE). The lawsuit’s timing suggests that Netflix’s acquisition was far from routine. It was a strategic move to strengthen its position in an ongoing patent battle.

The 14 patents in question cover a wide range of technologies essential to modern cloud and streaming infrastructure, including network optimization, video delivery, and virtualization. These technologies underpin the core of cloud services, content delivery networks, and the broader streaming ecosystem.

This analysis examines the patents in this acquisition, mapping key technologies and analyzing citations. It also highlights the impact of the acquisition on players in similar domains, and your company is under its radar.

Netflix Enters HPE’s Buyer List

Although the patents were officially transferred from Regional Resources Limited, the previous owner was HPE, which is known for selling patents as part of its business model. This makes it likely that the actual transaction was between Netflix and HPE, with Regional Resources acting as a holding intermediary.

In fact, HPE’s own IP portfolio website states that it routinely works with buyers to transfer patents. This suggests Netflix has joined a list of tech companies strategically acquiring litigation-ready assets.

Even though the patent acquisition deal has only been 4+ months, 5 of the acquired assets (US7779424B2, US7797707B2, US8185893B2, US8799891B2, US8863122B2) have already been in litigation. In fact, after acquiring these patents in November 2024, Netflix sued VMware in December 2024 itself (https://insight.rpxcorp.com/litigation_documents/16060754). 

Technologies covered in the acquired patent set

The 14 acquired patents span multiple technology domains essential to modern content streaming, cloud operations, and platform engagement:

Technology Group	Patent Numbers
Network Traffic Management & Optimization	US10331472B2, US7761444B2, US8315865B2, US8799891B2
Video Processing & Media Delivery	US7313102B2, US8863122B2
Network Security & Monitoring	US7797707B2, US8443365B2, US8910152B1, US8335785B2
Resource Management	US8566332B2
Cloud Computing & Virtualization	US8185893B2, US9189523B2
Data Storage & File Systems	US7779424B2

The One Patent Netflix Didn’t Use — Yet It Could Hit Multiple Industries at Once

Among the 14 acquired patents, only one—US8566332B2, classified under Resource Management—has not yet been used in litigation. A quick analysis, however, reveals that this asset may carry substantial strategic value beyond the current legal action.

The patent introduces a system designed to rank content on a webpage based on its freshness and how quickly it’s likely to become outdated. Existing systems either show the most recent content or rank it based on popularity (likes, shares, etc.). The content is shown based on how much engagement it gets or how recent it is. This is simple, but not necessarily the best method for keeping users engaged in the long run..

This new patent changes the game by introducing the idea of “novelty decay”. Here’s how it works:

• New content is more interesting to people, but it doesn’t stay fresh for long. The patent suggests that instead of just showing the latest posts, the system should calculate how quickly the freshness of the content wears off (the “decay”).
• So, the newer content gets higher priority, but it’s not just about showing the latest stuff—it’s about showing the content that will stay interesting for longer, based on how quickly its novelty fades.

Imagine you’re browsing a website that updates constantly, like a news or social media site. To keep you interested, the website needs to highlight the best, most relevant content at the top. This patent’s system does this in a smart way.

Here’s how it works:

1. First, it looks at the new content and figures out how “fresh” it is compared to everything else. It’s like checking the “freshness” date on food.
   
2. Then, it doesn’t treat all new content the same. It calculates each item’s “decay” score, predicting how soon it will lose its appeal. The newer content gets a low decay score, meaning it’s expected to stay interesting for a bit longer.
   
3. Finally, the content with the lowest decay score (the freshest stuff that will stay interesting longer) gets placed at the top of the page, where you’ll most likely see it first.

So, instead of just showing the very latest thing (which might get old quickly), the system smartly prioritizes content that is not only new but also more likely to keep your attention longer. It’s a better way of making sure the most engaging content is always front and center, grabbing your eye and keeping you hooked.

Key Industries and Companies Impacted by the Patent

The core concept of this patent—ranking content based on novelty and accounting for its gradual decline in relevance—applies to several technology sectors, especially those relying on personalization engines. Here’s how:

Content Scoring Tools (SEO & Content Marketing Platforms)

SEO and content marketing platforms actively score content based on freshness, often highlighting last updated timestamps or assigning freshness scores. Some even offer “content decay reports,” which monitor how engagement and visibility decline over time. These features help marketers proactively identify outdated material and optimize it to maintain performance, an approach directly aligned with tracking and adjusting for content relevance as it ages.

Recommendation Engines with Novelty and Diversity Features

Recommendation systems in media streaming, e-commerce, and news platforms strive to balance novelty with relevance. These systems don’t just suggest what’s new—they evaluate how new an item is for a user and, in advanced setups, predict how long the novelty effect will sustain engagement. While these engines serve a different function from general content-ranking systems, they similarly manage “newness” and anticipate its diminishing impact, mirroring the core logic of the patent.

Analytics Platforms with Trend Analysis Capabilities

Analytics tools continuously track web content performance using metrics like traffic and user engagement. By identifying downward trends, users can infer when content begins losing relevance—an implicit form of “novelty decay.” This real-time data enables web teams to refine their strategies and, in some cases, develop predictive models to counteract declining visibility.

Request a comprehensive review of these patents and find how they may affect your technology or product. Contact our patent experts today.

Companies Working in a Similar Direction

Several major players have acknowledged the technical relevance of this patent. Organizations like Google, IMDB, and IBM have already cited it, suggesting its strong alignment with practical implementations of content-ranking technologies.

Additionally, we identified another patent—USXXX860B2—filed by a major player in the telecommunications domain. This patent also prioritizes content based on a calculated “novelty value” and a corresponding “decay value.” The overlap in objectives is significant: both patents focus on ensuring that fresher, more engaging content appears more prominently within a system, recognizing that novelty fades over time.

The company behind the ‘860 patent leverages advanced ranking methodologies commonly used in search and retrieval systems to prioritize technical documents. These algorithms support internal users, such as troubleshooting engineers and field technicians, in locating the most relevant information quickly.

The patent likely protects these proprietary mechanisms, which align conceptually with the approaches described in the ‘332 patent for ranking content based on novelty and its decay over time.

Conclusion

This analysis of Netflix’s acquisition provides a comprehensive look at the patents involved and their potential implications for licensing and litigation within the digital content and technology sectors. 

Is your patent portfolio prepared for Netflix’s strategic move? GreyB’s complete report on this acquisition examines each patent’s core technology, monetization opportunities, and the legal risks companies could encounter.

Download the full report for an in-depth breakdown