Low-cost HDTV maker VIZIO is being sued by rival LG Electronics in the U.S. District Court for the Eastern District of Texas for allegedly failing to enter into a licensing agreement for use of their patents of digital television technology.
"Ironically, VIZIO has been a large indirect customer to LG Electronics for plasma technology," VIZIO reported in a statement regarding the lawsuit. "Through close collaboration with LG Electronics, VIZIO achieved a 25 percent market share of Plasma HDTV shipments in North America as of the second quarter of 2008, and John Morriss, VIZIO VP & GM of Core Products, has confirmed that the filing of the suit is 'a regrettable occurrence, and we fully expect this new development will influence future material sourcing decisions.'"
VIZIO’s suppliers have licenses for a vast array of digital technologies, and VIZIO believes that these licenses extend to VIZIO’s products, the company said. VIZIO has notified its suppliers of the lawsuit and expects full support and cooperation by them in the defense of the lawsuit. Accordingly, VIZIO does not believe that the suit will have a material adverse impact on VIZIO’s business.
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