Without a License

Saturday, October 27, 2007

The Oct. 20 Business article "High-Def and No Frills: Vizio's Winning Formula" suggested without any qualification that Vizio's success comes from making luxury items "affordable for the average Joe" and cutting "cosmetic extras that competitors sometimes offer but that do little . . . to enhance the viewing experience."

It neglected to mention, however, that unlike other manufacturers mentioned (Samsung, Philips, Sony and Sharp), Vizio reduces costs in part by failing to pay for a license under patents enabling the core digital compression technology used in all high-definition televisions, including its own.

By failing to report this fact, the article missed the story.

What's more, it encouraged the unauthorized use of intellectual property, which in this case is readily available to all high-definition television suppliers, including Vizio, on fair, reasonable nondiscriminatory terms.


Chief Executive Officer


Chevy Chase

MPEG LA is a patent licensing company for digital video compression used in consumer electronics.

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