Vizio Sued Over MPEG Video Patents

Mitsubishi, Samsung, Sony, and Philips have joined a suit against low-cost HDTV maker Vizio, saying the company is violating 15 patents essential to the MPEG-2 standard.

A number of the world’s leading manufacturers of high-definition televisions have filed a patent suit against low-cost HDTV maker Vizio, claiming the company is violating some 15 patents key to supporting MPEG-2 video in its products. According to the complaint, both the individual companies—which include heavy hitters like Sony, Samsung, Mitsubishi, and Phiips—has pursued Vizio about licensing the patents, but the company has refused to deal with them individually or with the MPEG Licensing Authority trade group. The suit was filed in federal court in Manhattan on June 2; other parties to the suit include Columbia University of New York, Victor Co. of Japan, and Thompson; the suit seeks an order to prevent Vizio from using the patents, as well as financial compensation.

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.

Responding to the suit, Vizio says that it doesn’t need licenses for the MPEG-2 patents, claiming its suppliers have licensed the patents and those licenses extend to Vizio’s products. Vizio says it will fight the suit, and expects its partners will support and cooperate in the defense.

Vizio has made a name for itself 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.