DVD Disc Manufacturer Dicentia Infringing MPEG-2 Patents, German Court Says

DENVER, CO, US -- September 19, 2008 -- The District Court Düsseldorf, Germany pronounced last week 12 verdicts on the merits finding that DVD disc manufacturers Dicentia Germany GmbH and Dicentia A/S (collectively, “Dicentia”) have infringed certain patents in the MPEG-2 Patent Portfolio License offered by MPEG LA as a result of Dicentia’s manufacture of DVD video discs.

The 12 verdicts of infringement were issued in all 12 cases on the merits brought by MPEG-2 patent owners who are also Licensors in the MPEG-2 Patent Portfolio License offered by MPEG LA. Those patent owners include CIF Licensing, LLC; GE Technology Development, Inc.; Koninklijke Philips Electronics NV; Matsushita Electric Industrial Co., Ltd.; Mitsubishi Electric Corporation; Sony Corporation; Thomson Licensing S.A.; The Trustees of Columbia University in the City of New York; and Victor Company of Japan, Ltd. (JVC).

As a result of these 12 verdicts on the merits and upon the patent owners providing the requisite security bonds, enforcement of the verdicts will require Dicentia to cease its production of DVD video discs in Germany and to pay damages to the patent owners for past DVD video disc production. Dicentia may appeal these verdicts.

In addition, the District Court Düsseldorf issued preliminary injunctions against Mr. Torben Nordquist, Disc Technology Center GmbH and others on behalf of Sony and Philips as a result of the DVD video disc production activities at the former premises of Optical Disc Service (ODS) in Dassow, Germany. See http://www.mpegla.com/news/n_07-01-11_pr.pdf. These injunctions can be appealed, too.

“The verdicts against Dicentia further confirm the need for a license under MPEG-2 patents in DVD video disc production,” said Larry Horn, CEO of MPEG LA.

The MPEG-2 Standard is the core technology underlying the efficient creation, transmission, storage and display of digitized moving images and sound tracks on which DVD and other digital technologies are based; and the DVD-Video Standard (DVD Specifications for Read-Only Disc, Part 3: VIDEO SPECIFICATIONS) requires DVD Video discs to contain information formatted in accordance with the MPEG-2 Standard.

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 nearly 1,400 licensees accounting for most MPEG-2 products including set-top boxes, DVD players, digital television sets, personal computers and DVD Video 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.