A sign that DVD is a money maker, get the legal types involved...
Drexler Seeks Compensation From Disney, Paramount, Twentieth Century Fox, Dolby, and Others for Patent Infringement Involving More Than 400 Films Using Dolby Digital Sound
biz.yahoo.com
MOUNTAIN VIEW, Calif.--(ENTERTAINMENT WIRE)--Aug. 4, 1998-- Drexler Technology Corporation (NASDAQ:DRXR - news) today announced that it has filed a patent-infringement lawsuit against Walt Disney Company, Dolby Laboratories, and others for illegally using Drexler's patented ''micro-chessboard'' digital data format to encode Dolby Digital Sound on more than 400 feature motion picture films to date.
The suit was filed in the United States District Court for the Northern District of California, against Walt Disney Company (NYSE:DIS - news) and Disney subsidiaries Hollywood Pictures, Touchstone Pictures, and Miramax; Paramount Pictures (ASE:VIA.B - news); Twentieth Century Fox (NYSE:NWS - news); Metro-Goldwyn-Mayer (NYSE:MGM - news); Polygram Film Entertainment (NYSE:PLG - news); Universal Studios (NYSE:VO - news); Loew's Cineplex Entertainment Corporation (NYSE:LCP - news); American Multi-Cinema/AMC Entertainment (ASE:AEN - news); Dolby Laboratories Inc.; and other parties.
According to Drexler's attorney, Ronald J. Schutz, Drexler is seeking damages in the form of a percentage of gross revenues for each Dolby Digital Sound motion picture film produced since 1993. ''Box-office revenues for films made with Drexler's patented technology total in the billions of dollars,'' said Schutz. ''Drexler Technology is a pioneer in this area and is entitled to significant damages for the unauthorized use of its technology,'' added Schutz.
Schutz is a partner in the Minneapolis law firm of Robins, Kaplan, Miller and Ciresi and recently won $110 million from General Electric in a patent-infringement case.
The use of Drexler's ''micro-chessboard'' or ''quad-density'' data format quadruples the amount of digital data storable; makes possible six-channel, high quality theatre sound, which provides a new method for attracting the public to the theatres; inhibits illegal film copying; and makes possible the re-release of previously successful film classics such as Star Wars, The Empire Strikes Back, Return of the Jedi, The Godfather, Grease, and My Fair Lady by adding six-channel digital sound.
The Drexler Technology patents involved are U.S. patent 4,634,850, which expires January 6, 2004, entitled, ''Quad Density Optical Data System,'' and U.S. patent 4,786,792, which expires November 2, 2005, entitled, ''Transmissively Read Quad Density Optical Data System.''
Those two patents relate to use of a ''quad-density'' or ''micro-chessboard'' format of digital optical data which is read by a CCD photodetector array, to quadruple the amount of digital data that can be stored optically on motion picture film (or optical memory cards).
The lawsuit also seeks an injunction that the defendants cease operation, installation, and manufacture of Dolby-Digital-Sound based motion picture films and theatre sound systems and asks for an accounting of and compensation for damages.
Drexler Technology Corporation manufactures LaserCard(R) optical memory cards, develops PC-based optical memory card data systems, develops system software, and has been granted more than 50 U.S. patents and about 70 foreign counterpart patents in optical data storage.
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