Statements Attributed to ODS Regarding MPEG LA License Are In Error

Denver, Colorado, US - 3 January 2007 - MPEG LA today refuted statements attributed to DVD disc manufacturer ODS Optical Disc Service (“ODS”) to the effect that ODS affiliates have acquired a license issued by MPEG LA (e.g., http://ww2.abc11tv.com/Global/story.asp?S=5865832, http://www.homemediaretailing.com/index.cfm?sec_id=2). MPEG LA has not entered into any license with ODS or any ODS affiliate, and any suggestion or reliance to the contrary is in error. DVD Video discs in accordance with the DVD-Video Standard (DVD Specifications for Read-Only Disc, Part 3: VIDEO SPECIFICATIONS) contain information formatted in accordance with the MPEG-2 Standard, but ODS and ODS affiliates remain unlicensed under patents in the MPEG-2 Patent Portfolio License offered by MPEG LA that are essential to its use. Use of such patents without license also may create infringement liability for ODS customers.

The leading District Court for patent infringement in Germany (Landgericht Düsseldorf) announced eight verdicts in November 2006 finding that ODS has infringed certain patents licensed in the MPEG-2 Patent Portfolio License offered by MPEG LA as a result of ODS's manufacture of DVD discs carrying coded video data. Following those decisions, several patent holders enforced the verdicts. As a result, although the verdicts can be appealed, ODS must cease and desist its current DVD production, which uses the enforced patents, and pay damages to the patent owners for past DVD production. See http://www.mpegla.com/news/n_06-12-21_pr.pdf and http://www.mpegla.com/news/n_06-11-30_pr.pdf.

MPEG LA, LLC

MPEG LA is the world leader in alternative technology licenses, enabling users to acquire worldwide patent rights necessary for a technology standard or platform from multiple patent holders in a single transaction as an alternative to negotiating separate licenses. Wherever an independently administered one-stop patent license would provide a convenient marketplace alternative to assist users with implementation of their technology choices, the licensing model pioneered and employed by MPEG LA may provide a solution. Among MPEG LA’s licenses is one for MPEG-2 digital video compression that has helped produce the most widely employed standard in consumer electronics history. The MPEG-2 Patent Portfolio License, which includes approximately 800 MPEG-2 essential patents in 57 countries, has more than 1000 licensees accounting for most MPEG-2 products, including an estimated 90% of all DVD discs, in the current world market. MPEG LA is an independent licensing administrator; it is not related to any standards agency and is not an affiliate of any patent holder. For more information, please refer to http://www.mpegla.com.