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DVD Patent Case Dropped

12 Jan, 2004 By: Holly J. Wagner

A company that sought to collect licensing fees from 11 retailers that sell DVDs and players has dropped its patent infringement lawsuit, the company's attorney said.

Multi-Format Inc. of Dumont, N.J., dropped the complaint filed in U.S. District Court against Amazon.com, Best Buy, Buy.com, Circuit City, Costco, Fry's Electronics, Kmart, Radio Shack, Sears Roebuck & Co., Target and Wal-Mart.

The company had claimed that its patent on transmitting content at 24 frames per second applied to DVD.

“We dismissed the case. In talking to some of the people in the industry, we decided we do not have a strong infringement case, so we decided to dismiss,” said Alan Block, Multi-Format's attorney. “We have notified the attorney who represents all the retailers.”

Multi-Format sought to collect 3 cents from every sellthrough disc and 2 cents for every DVD rental, as well as $2 per DVD player sold, $3 for each personal computer sold with an onboard DVD-ROM drive and $2 for computers without DVD-ROM drives.

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