Mitsubishi, Samsung, Sony, and Philips have filed a patent suit against low-cost HDTV maker Vizio claiming the company is violating 15 patents key to supporting MPEG-2 video in its products.
The legal action is seeking an order to prevent Vizio from using the patents, as well as financial compensation.
According to the complaint – other parties to which also include Columbia University of New York, Victor Co. of Japan, and Thompson – the individual companies have pursued Vizio about licensing the patents, but the company has refused to deal with them.
It is claimed that Vizio has also declined to discuss the matter with the MPEG Licensing Authority trade group.
In response to the suit, which was filed in federal court in Manhattan on June 2, Vizio said it doesn’t need licenses for the MPEG-2 patents.
It claims its suppliers have licensed the patents and those licenses extend to Vizio’s products.
The company said it will fight the suit and expects its partners will support and cooperate in the defence.
Earlier this year, the MPEG LA trade group filed suit against Target over its Tru-tech brand of televisions (PDF) on similar patent infringement claims.
Vizio has made a name for itself in the US by selling comparatively low-cost high-definition televisions through mass retailers like Wal-mart, Costco, and Circuit City, often substantially undercutting prices for similarly-featured models from competitors. During the first quarter of 2008, Vizio was ranked as the number three seller of LCD televisions by DisplaySearch and iSuppli.
Tag: mitsubishi
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Leading HDTV manufacturers take legal action against Vizio over patents
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Higher sales of HD devices helps TiVo report soaring Q1 profits
Digital video recorder maker TiVo has reported soaring income for the first quarter of 2008 boosted by higher sales of HD devices and reduced advertising costs.
The California-based company said it earned $3.6 million, or 4 cents per share, for the three months ending April 30.
This is up from a profit of $835,000, or 1 cent per share, in the same period a year earlier.
Revenue totalled $54.9 million, down 5.5 per cent from $58.1 million for the same period last year.
Tom Rogers, President and CEO of TiVo, said the most significant activity being worked on to boost stand-alone sales of HD devices was relationships with third parties.
He said tests were begun last quarter with bundling with HDTV set sales.
This was working either directly with a consumer electronics manufacturer or retailers on the bundling of the TiVo sales and potential content partners who have particular reasons to see TiVo sales driven.
“Several of the bundling programs we ran during the quarter were promising, increasing sales for both TiVo and the consumer electronic manufacturer, while allowing us to acquire subs at lower costs.
“For example, we ran a bundle in conjunction with Amazon.com and Mitsubishi that increased not only TiVo sales but Mitsubishi’s as well.”
Rogers said an expansion of these bundling efforts was planned and he was hopeful that the early successes would translate on a broader scale.