MPEG LA Sues Mintek Digital, Inc. for Breach of MPEG-2 License Agreement

Suit alleges Mintek failed to pay millions in royalties, also names Jiangsu Digital Technology Co., Ltd and Shinco Electronics Group Co., Ltd.

Denver, Colorado, US — MPEG LA, LLC today announced that it has sued Mintek Digital, Inc. (“Mintek”), a manufacturer and supplier of DVD players located in California, for breach of its MPEG-2 Patent Portfolio License (“Contract”) with MPEG LA. The suit also names Mintek’s parent Jiangsu Digital Technology Co., Ltd (“Shinco Digital”) and Shinco Digital’s parent, Shinco Electronics Group Co., Ltd. (“Shinco Electronics”), both located in China, as responsible for Mintek’s obligations. According to the complaint, Mintek failed to report fully its use of MPEG-2 patents and make royalty payments as required by the Contract. The lawsuit brought in the US District Court of Colorado seeks, among other things, monetary damages and an order enjoining Mintek from using MPEG-2 patents in its products.

MPEG LA Chief Executive Officer Larry Horn said, “Mintek cannot be allowed to offer DVD players without paying for the fundamental MPEG-2 technology that makes them possible. MPEG LA in cooperation with patent owners has gone to great lengths to make MPEG-2 technology easily accessible to all users under a single license. Mintek chose to sign that license for its own convenience, and MPEG LA will not tolerate Mintek’s failure to meet the contractual obligations expected of all licensees. Mintek’s neglect of its contractual obligations is unfair to both the owners of MPEG-2 technology and MPEG LA’s customers who respect their intellectual property obligations by paying what they owe.”