January 8, 2010

JVC Wins Suit Concerning Infringement of DVD Patent in Germany, Agrees with Ritek to Discuss License Agreement

Victor Company of Japan, Limited (JVC), an operating company of the JVC KENWOOD Group, won a suit it had filed against Conrexx Technology BV (Conrexx), a German affiliate of Ritek Corporation which is a major Taiwanese DVD recordable disc manufacturer (Ritek). The suit had been filed with the District Court of Mannheim in Germany concerning infringement of JVC’s DVD recordable disc patent (technology to scrambling digital information to be recorded on a disc). Following the decision in favor of JVC, JVC and Ritek reached an agreement to quickly conclude a license agreement including the said patent, and will proceed with discussions on the terms of settlement.

Having judged that Conrexx had been illegally manufacturing DVD products in violation of a European patent of JVC’s on the scrambling digital information, which is essential for DVD products, JVC filed a writ to the District Court of Mannheim in Germany in March 2009, demanding that Conrexx cease and desist manufacturing and selling the said products. The court decided in favor of JVC.

Summary of the judgment

  • Cease and disist such acts as manufacture, sales, use and import of DVD-R discs by Conrexx;
  • Disclosure of information on products that violate the patent and compensation for damages caused by acts of violation, by Conrexx; and
  • Reimbursement of legal costs, including expenses on lawyers, by Conrexx.

As a holder of essential patents concerning DVD technologies, JVC is continuously implementing license activities through *DVD6C or independently. As a result, Taiyo Yuden Co., Ltd., Moser Baer India, Ltd. and other companies have individually acquired licenses from JVC, in addition to corporations that have obtained licenses from DVD6C. JVC is taking enforcement procedures, including legal action, in various countries against manufacturers of DVD products that unfairly continue business without acquiring such licenses.

The latest judgment indicates anew the importance of patents held by JVC and the legitimacy of JVC’s claim. JVC intends to further enhance its activities to enforce rights against DVD products manufacturers that have not obtained licenses.

JVC KENWOOD Group has taken a strict stance toward businesses that violate patents on its products through exposure, lawsuits and other means. Based on a stance to protect consumers and its rights and interests, the JVC KENWOOD Group will make more rigorous efforts to eliminate infringement of intellectual property rights by these illegal businesses on a global basis.

 *DVD6C  A licensing agency comprising nine principal developers of DVD technologies and formats (Hitachi, Ltd.; Panasonic Corporation.; Mitsubishi Electric Corporation; Sanyo Electric Co., Ltd.; Sharp Corporation; Toshiba Corporation; Victor Company of Japan, Limited; Warner Bros. Home Entertainment and Samsung Electronics Co., Ltd.). It is a body that collectively and jointly licenses essential patents on DVD standards concerning products such as DVD-Video Player, DVD Recorder, DVD Drive, DVD-Video Disc, and DVD Recordable Disc, which are owned by the nine constituent companies, to third parties around the world that wish to use the subject patents.

For inquiries regarding this news release, please contact:

Contact for inquiries from the press 
Public & Investor Relations, Strategic Management Division, JVC KENWOOD Holdings, Inc.
3-12 Moriya-cho, Kanagawa-ku, Yokohama, Kanagawa Prefecture 221-0022
Tel.: +81-45-444-5232 Fax: +81-45-444-5239
E-mail: prir@jk-holdings.com

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