MPEG LA Sues Opta Corporation and Opta Systems, LLC, Formerly Doing Business as GoVideo, for Breach of MPEG-2 and 1394 License Agreements



    DENVER, September 18 /CNW/ - 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.




For further information:

For further information: MPEG LA, LLC Tom O'Reilly, 860-620-0642
to'reilly@mpegla.com

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