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Tuesday, April 22, 2008
MPEG-2 Patent Owners Sue Target Corporation


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 them.

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.


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