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InnovaCom Patent For Digital Video May Have Wide-ranging Implications
September 5, 1997
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A patent for television set top boxes used in sending and/or receiving
digital audio and video data, which has implications for networking,
i.e. teleconferencing and Internet, as well as satellite tv, wireless
cable, video games and security systems, plus personal and professional
computers, has been assigned exclusively to InnovaCom, Inc. (OTC BB:
MPEG), designer and developer of MPEG-2 single chip encoding integrated
circuits, by its founder and chairman, Mark C. Koz.
The company said the patent, issued July 1, 1997, was originally issued
to Koz, who filed the patent in 1992, prior to the founding of the
company.
International patent applications have been filed and currently are
pending. Koz has assigned the patent to InnovaCom in exchange for one
million shares of restricted common stock, valued at $3 million,
supplementing his existing block of controlling shares, which are
subject to volume controls and SEC reporting under Rule 144. The company
believes it has negotiated this agreement in terms that are favorable to
its shareholders.
"The patent, No. 5,644,355, which is titled 'Adaptive Video Subscriber
System', is enforceable on all digital video set top boxes produced
using multiple compression standards, including those designed for cable
television decoding and for reception of DVB television signals. Because
our set top box patent was designed for multiple video compression
standards it represents the next generation of set top boxes in the
digital age. We believe the patent will generate substantial revenues
because of its exclusivity," Rand Shrader, InnovaCom's chief operating
officer said. "We expect to aggressively protect the company's rights
under the patent."
During the past year InnovaCom has completed marketing agreements with
or designed MPEG-2 product configurations for several companies which
could participate in the benefits of the set top box patent protection.
They are:
- Sun Microsystems -- Design of an MPEG-2 encoding board for its
UltraSPARC workstation.
- ESS Technology -- Joint development of MPEG-2 encoders for DVD
authoring systems and set-top boxes.
- Digital Equipment Corporation -- Cross licensing agreement to develop
and share program interfaces for MPEG-2 encoding on Windows and Windows
NT.
- Mitsubishi -- Joint development of a DVD-R recording system.
- Litton's Fibercom Division -- Integration of InnovaCom's DV 2100
MPEG-2 board in its CAMVision-2 network video delivery system.
InnovaCom's single-chip MPEG-2 encoder is scheduled for shipment the
first quarter of 1998 and will be used in satellite, cable, broadcast
and consumer applications.
InnovaCom, a diversified company, also owns Sierra Vista Entertainment,
an independent film production company in Los Angeles involved in
content acquisition in addition to its library of in-house film titles.
InnovaCom is located at 2855 Kifer Road, Suite 100, Santa Clara, Calif.
95051. Telephone is 408/727-2447 (CHIP) and Fax is 408/727-6625.
InnovaCom Investor Relations contact is Ben Gibson at 888/464-6734.
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Copyright c 1997 NCNS News. All rights reserved. |
