MPEG LA, LLC has filed an
enforcement action in the Federal District Court of the
Southern District of New York against Target Corporation
and Doe Corporations 1-10 for infringing patents essential to the MPEG-2 digital video compression standard.
According to the complaint, Target offers in its retail
stores a variety of products under its Trutech house brand
name, such as digital televisions and DVD players, that use
patent protected MPEG-2 methods without having entered into
licenses with the individual patent holders or a portfolio
license that includes these patents offered by MPEG LA. The
complaint also alleges that at Target's request the Doe
Corporations manufacture and produce the unlicensed products
for sale by Target under Target's Trutech brand name, but
these Doe Corporations are not believed to be licensed or
paying royalties on Target's behalf.
"We have offered Target a license, but regrettably they have
refused," said MPEG LA CEO Larry Horn.
The suit seeks, among other things, monetary damages and an
injunction prohibiting Target from using MPEG-2 patents in
its products and from offering, marketing, or importing
Target Corporation's operations include large, general merchandise and food discount stores and online business. The company currently operates 1,613 Target stores in 47 states.