14 DAY TRIAL // Nero has debuted legal action against MPEG-LA, alleging that the organization is abusing its monopoly position. As many other companies dealing with multimedia content, Nero has licensed the use of technology from MPEG-LA for its products. In fact, according to Sullivan & Cromwell's Garrard Beeney, the lawyer representing MPEG-LA, it is precisely the license agreement, and Nero’s failure to abide by it that are the causes of the lawsuit. Nero, of course, states otherwise, and is looking to cause the Department of Justice to start antitrust actions against MPEG-LA. (via OSNews)
“MPEG-LA willfully maintains, extends and abuses its monopoly power in the relevant technology markets – which are the worldwide markets for the licensing of patent relating to MPEG-2, MPEG-4 Visual and AVC standards – within the digital video technology industry. In doing so it stifles competition and innovation, and harms consumers, in the relevant technology markets,” Nero noted in the lawsuit.
Nero alleges that MPEG-LA did not use a truly independent expert to filter only essential patents for inclusion in the organization’s patent pool. According to the German company, MPEG-LA also increased its patent pool to contain over 800 items for the MPEG-2 license, although it indicated that only 53 were essential examples of intellectual property to DOJ. At the same time, Nero is pointing the finger at MPEG-LA for imposing unfair, unreasonable and discriminatory licensing terms to interested parties.
“MPEG-LA's unlawful actions have caused, and will continue to cause, Nero irreparable harm for which it has no adequate remedy at law. In sum, MPEG-LA's predatory and abusive conduct has caused antitrust injury to innovation, competition, and consumers in the relevant technology markets,” Nero stated.
The German company that produces the popular Nero media burning software revealed that it was looking for compensations, in addition to the termination of what it called “MPEG-LA’s unlawful maintenance, extension, and abuses of its monopoly power.”