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MATSUSHITA SETTLES PATENT INFRINGEMENT CLAIM AGAINST CINRAM

Matsushita Electric Industrial Co Ltd, better known as Panasonic, announced the settlement of a patent infringement suit it brought against Cinram International Inc regarding DVD patents. Cinram's counter claim alleging antitrust law violations was dismissed in January of this year. These antitrust claims, which the district court found did not have any merit, challenged the operation of the DVD6C Licensing Agency. Under the terms of the settlement, Cinram will pay an undisclosed amount to Matsushita Electric in exchange for its use of Matsushita's essential and non-essential patents regarding DVD disc replication.

Matsushita Electric filed suit against Cinram in Delaware Federal District Court in December 2001, alleging that Cinram had infringed several patents held by Matsushita, including patents essential to DVDs that are licensed by the DVD6C Licensing Agency -- of which Matsushita is a member. Cinram subsequently took a 6C Pool license, but Matsushita pressed its claims that Cinram had used Matsushita's non-essential DVD patents, that are not included in the 6C Pool License, without paying royalties to Matsushita.

"It is our Company's policy to protect its valuable intellectual property rights. We will not hesitate to take legal action when those rights are not respected. We are pleased that the outcome of this litigation allows us to put this matter behind us and work with Cinram as a licensee," said Osamu Yamazaki, director of the corporate intellectual property division of Matsushita Electric, who further noted that DVD replication is a fast growing and important market for consumer electronics, computer and optical storage media companies.