MPEG LA Sues Audiovox for Breach of MPEG-2 and 1394 Patent Pool Contractual Obligations

    DENVER, December 20 /CNW/ - MPEG LA, LLC, world leader in alternative
one-stop patent licenses, today announced that it has commenced an action
against Audiovox Electronics Corporation ("Audiovox") for breach of
contractual obligations as a Licensee to MPEG LA's MPEG-2 Patent Portfolio
License (the "MPEG-2 Contract") and 1394 Patent Portfolio License (the "1394

    According to the complaint filed in the Supreme Court of the State of New
York, Audiovox has breached its contractual obligations by failing to report
fully its manufacture or sale of products such as DVD players and digital TVs
that use the MPEG-2 digital video compression standard or employ the
high-speed transfer digital interface provided for in the IEEE 1394 standard,
failing to make full payments for its manufacture or sale of such products,
and refusing to allow an audit as permitted by the MPEG-2 Contract and 1394
Contract (collectively, "the Contracts").

    MPEG LA seeks, among other things, monetary damages, an order requiring
Audiovox to allow the contractually required audit, an accounting of all
products manufactured or sold by Audiovox subject to the Contracts, as well as
injunctive relief prohibiting Audiovox from the manufacture or sale of MPEG-2
and 1394 products.


    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 850
MPEG-2 essential patents in 57 countries, has more than 1300 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 275 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

For further information:

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

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