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MPEG LA Sues Apex Digital, Inc. for Breach of MPEG-2 License Agreement
Posted Feb 3, 2004 Print Version     Page 1of 1
  

MPEG LA, LLC announced that it has sued Apex Digital, Inc., a manufacturer and supplier of DVD players, for breach of its contractual obligations under the MPEG-2 Patent Portfolio License that Apex Digital entered into with MPEG LA. The lawsuit alleges that Apex Digital has breached the Contract by failing to report fully its use of MPEG-2 patents; failing to pay the royalty payments due for the use of those patents; and failing to provide an auditor with all of the documents required by the Contract for a complete audit to independently determine Apex Digital's compliance with the Contract.

The suit notes that Apex Digital's reports of product sales to MPEG LA are not consistent with public reports of Apex Digital's sales of those products. The lawsuit brought in U.S. District Court in Colorado seeks monetary damages including interest, an accounting of all Apex Digital products on which royalties are payable, an audit of Apex Digital's books and records, and an injunction prohibiting Apex Digital from using MPEG-2 patents in its products until Apex Digital pays all royalties that it owes to MPEG LA.

www.mpegla.com

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