Blue-ray Chip Manufacturer Sues over Licensing of Audio Standard

Zoran Corp., a manufacturer of chip sets used to make Blue-ray DVD players, has filed a monopolization case against DTS, Inc., licensor of the technology used to encode audio on Blue-ray discs.  Zoran argues that DTS is obligated by the Blue-ray standard setting agreement to license the technology and fair, reasonable, and non-discriminatory terms.  Zoran argues that DTS has violated this standard by (1) demanding a large up-front payment to even begin licensing negotiations; (2) demanding unreasonable indemnity provisions; and (3) failling to respond to Zoran’s mark-up of a draft license.  Zoran contends that these actions constitution the abuse of a monopoly position in violation of Section 2 of the Sherman Act.

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