MPEG LA Sues Alcatel Lucent for Breach of MPEG-2 Patent Pool Contractual Obligations

    DENVER, November 5 /CNW/ - MPEG LA, LLC, world leader in alternative
one-stop patent licenses, today announced that it has commenced an action
against Alcatel Lucent ("Alcatel") for breach of contractual obligations as a
Licensor in MPEG LA's MPEG-2 patent pool licensing program. The suit also
names Lucent Technologies, Inc. ("Lucent") and Multimedia Patent Trust (the

    According to the complaint filed in the Court of Chancery for the State
of Delaware, Alcatel promised to make available to Licensees through MPEG LA's
MPEG-2 Patent Portfolio License all MPEG-2 essential patents which Alcatel can
license or sublicense - and not take any action to subvert that commitment.
But rather than abide by that promise, Alcatel and Lucent created the Trust to
hold patents that Alcatel was and is required to place into the MPEG-2
License, and has taken the position that the essential MPEG-2 patents
purportedly transferred to the Trust cannot be placed in the MPEG-2 License.

    In fact, the patents were transferred to the Trust (in which Alcatel has
99% beneficial ownership) with Alcatel's agreement and consent, and the only
purpose of the transfer was to avoid Alcatel's contractual commitment in order
to extract additional royalties from MPEG-2 patent pool Licensees.

    MPEG LA seeks, among other things, declaratory, injunctive and other
equitable relief.


    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 1,300 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. 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

For further information:

For further information: MPEG LA, LLC Tom O'Reilly, 860-620-0642 Fax:

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