Statements Attributed to ODS Regarding MPEG LA License Are In Error

MPEG LA today refuted statements attributed to DVD disc
manufacturer ODS Optical Disc Service ("ODS") to the effect that ODS
affiliates have acquired a license issued by MPEG LA (e.g.,
http://ww2.abc11tv.com/Global/story.asp?S=5865832,
http://www.homemediaretailing.com/index.cfm?sec_id=2). MPEG LA has not
entered into any license with ODS or any ODS affiliate, and any
suggestion or reliance to the contrary is in error. DVD Video discs in
accordance with the DVD-Video Standard (DVD Specifications for
Read-Only Disc, Part 3: VIDEO SPECIFICATIONS) contain information
formatted in accordance with the MPEG-2 Standard, but ODS and ODS
affiliates remain unlicensed under patents in the MPEG-2 Patent
Portfolio License offered by MPEG LA that are essential to its use.
Use of such patents without license also may create infringement
liability for ODS customers.

The leading District Court for patent infringement in Germany
(Landgericht Dusseldorf) announced eight verdicts in November 2006
finding that ODS has infringed certain patents licensed in the MPEG-2
Patent Portfolio License offered by MPEG LA as a result of ODS's
manufacture of DVD discs carrying coded video data. Following those
decisions, several patent holders enforced the verdicts. As a result,
although the verdicts can be appealed, ODS must cease and desist its
current DVD production, which uses the enforced patents, and pay
damages to the patent owners for past DVD production to patent
holders. See http://www.mpegla.com/news/n_06-12-21_pr.pdf and
http://www.mpegla.com/news/n_06-11-30_pr.pdf.

MPEG LA, LLC

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 approximately 800 MPEG-2 essential patents in 57 countries,
has more than 1000 licensees accounting for most MPEG-2 products,
including an estimated 90% of all DVD discs, in the current world
market. 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 http://www.mpegla.com.