DENVER, CO, US -- September 19, 2007 -- MPEG LA, LLC, world leader in alternative one-stop patent licenses, today announced that it has sued Opta Corporation and its subsidiary Opta Systems, LLC, formerly doing business as GoVideo, for breach of Opta Systems, LLC’s MPEG-2 Patent Portfolio License and 1394 Patent Portfolio License (“Contracts”) with MPEG LA.
According to the complaint filed in the Delaware Court of Chancery, Opta Systems, LLC has breached its contractual obligations to MPEG LA by failing to report the manufacture and sale of MPEG-2 and 1394 Royalty Products and pay royalties as required by the Contracts. Opta Systems, LLC manufactured and sold DVD players and other devices incorporating patented MPEG-2 and IEEE 1394 technologies. It is further alleged that Opta Systems, LLC’s assets were later transferred to Opta Corporation to avoid paying royalties. MPEG LA seeks, among other things, monetary damages and an order enjoining Opta Systems, LLC and Opta Corporation from using MPEG-2 and 1394 patents.
Digital Products International (DPI, Inc.), formerly GPX, Inc., which reportedly now has an exclusive licensing agreement with Opta Corporation for use of the GoVideo brand, is an MPEG-2 Patent Portfolio Licensee in good standing and is not a party to this action.
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 more than 825 MPEG-2 essential patents in 57 countries, has approximately 1200 licensees accounting for most MPEG-2 products in the current world market. DVD videos are encoded with MPEG-2 video data, and every DVD player contains an MPEG-2 decoder. In addition, MPEG LA licenses patents that are essential for the IEEE 1394 high speed transfer digital interface; the 1394 Patent Portfolio License, which includes more than 175 patents in 22 countries, has more than 350 licensees. 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.