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Blu-Ray faces Antitrust Complaint

•  Court News     updated  2008/10/09 09:21

In a federal antitrust complaint, Zoran, an integrated circuitscompany, claims DTS (fka Digital Theater Systems) monopolized Blu-Raydisc technology by inducing the Blu-Ray Disc Association to adopt astandard for high-definition DVDs that include DTS patents as amandatory element.

   DTS holds multiple patents on sound-datacompression. Some of these have been incorporated into the Blu-Ray DiscAssociation's standards, Zoran says.

   Zoran, based in AgouraHills, says that standards-setting organizations require members tolicense their products on "fair, reasonable and non-discriminatoryterms."

   Zoran claims DTS is not doing that, demanding"upfront payments of millions of dollars for a license from DTS for itsessential IPR (intellectual property rights)."

   This restrains competition in Blu-Ray devices and among chip manufacturers, in violation of the Sherman Act, Zoran says.

   Zoran demands treble damages and an injunction. It is represented by Jeffrey Shohet with DLA Piper.

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