Unedited press releases follow:
Jury Awards MPEG LA Damages in Breach of Contract Lawsuit against Audiovox
DENVER–MPEG LA is pleased to announce that in a breach of contract action against Audiovox Electronic Corporation, now known as VOXX International (http://www.mpegla.com/Lists/MPEG%20LA%20Legal%20Action%20List/Attachments/193/n_07-12-20_pr.pdf), the court declared the clear language of the MPEG-2 Patent Portfolio License to require that the entity selling products to the end user, either directly or through a chain of distribution, was responsible for all royalties. Today, a jury found Audiovox in breach of the MPEG-2 License and awarded MPEG LA damages on a portion of Audiovox’s unpaid sales; MPEG LA will pursue payment for the remainder.
MPEG LA, LLC
MPEG LA is the world leader in alternative technology licenses, enabling users to acquire worldwide patent rights necessary for a technology standard or platform from multiple patent owners in a single transaction as an alternative to negotiating individual licenses. Wherever an independently administered one-stop patent license would provide a convenient marketplace alternative to assist users with implementation of their technology choices, the licensing model pioneered and employed by MPEG LA may provide a solution. By balancing patent users’ interest in reasonable access with patent owners’ interest in reasonable return, MPEG LA creates the opportunity for adoption of new technologies and fuels innovation. MPEG LA’s initial licensing program for MPEG-2 digital video compression helped produce the most widely employed standard in consumer electronics history, and the MPEG LA® Licensing Model has become the template for addressing other technologies. Today MPEG LA manages licensing programs consisting of essential patents in 74 countries. For more information, please refer to http://www.mpegla.com.
Audiovox Electronics Corporation Announces Ruling in Litigation With MPEG LA
HAUPPAUGE, N.Y., Dec. 15, 2011 — Audiovox Electronics Corporation (“AEC” “The Company”), a wholly owned subsidiary of VOXX International Corporation (NASDAQ: VOXX) today announced a decision in the patent licensing litigation pending in the Suffolk County Supreme Court in Riverhead, New York.
The jury found in favor of Audiovox Electronics Corporation ruling that AEC was not responsible for the period September 1, 2000 to September 30, 2006. The Company will make payments to MPEG LA for the period October 2006 – September 2009 and expects to be reimbursed by its suppliers for these payments.
Patrick Lavelle, VOXX International’s President & Chief Executive Officer stated, “Our Company respects intellectual property rights and stands by our agreements with our partners. We have and continue to take aggressive steps to protect our own intellectual property and will vigorously defend our position when we believe we are correct. The jury verdict in this case has confirmed our position.”
About VOXX International Corporation
VOXX International Corporation (NASDAQ: VOXX) is the new name for Audiovox Corporation, a company that was formed over 45 years ago as Audiovox that has grown into a worldwide leader in many automotive and consumer electronics and accessories categories, and now into premium high-end audio. Through its wholly owned subsidiaries, VOXX International proudly is recognized as the #1 premium loudspeaker company in the world, and has #1 market positions in automotive video entertainment and remote starts and TV remote controls and reception products. The Company’s brands also hold leading market positions across a wide-spectrum of consumer and automotive segments.
Today, VOXX International is a global company….with an extensive distribution network that includes power retailers, mass merchandisers, 12-volt specialists and most of the world’s leading automotive manufacturers. The company has an international footprint in Europe, Asia, Mexico and South America, and a growing portfolio, which is now comprised of over 30 trusted brands. Among the key domestic brands include Klipsch®, RCA®, Invision®, Jensen®, Audiovox®, Terk®, Acoustic Research®, Advent®, Code Alarm®, CarLink®, Omega®, Excalibur®, Prestige®, and SURFACE. International brands include Klipsch®, Jamo®, Energy®, Mirage®, Mac Audio®, Magnat®, Heco®, Schwaiger®, Oehlbach® and Incaar™. The Company continues to drive innovation throughout all of its subsidiaries, and maintains its commitment to exceeding the needs of the consumers it serves. For additional information, please visit our Web site at www.voxxintl.com.