Vizio Comments on Lawsuit by LG
VIZIO, America’s HDTV Company has announced that it is aware (though it has not yet been served) of a suit filed September 19, 2008 in the U.S. District Court for the Eastern District of Texas by LG Electronics v. Petters Group Worldwide LLC et al alleging that VIZIO, Inc., along with other HDTV brand competitors failed to enter into a licensing agreement for use of their patents of digital television technology.
Ironically, VIZIO has been a large indirect customer to LG Electronics for plasma technology. Through close collaboration with LG Electronics, VIZIO achieved a 25% market share of Plasma HDTV shipments in North America as of the second quarter of 2008, and John Morriss, VIZIO VP & GM of Core Products, has confirmed that the filing of the suit is “a regrettable occurrence, and we fully expect this new development will influence future material sourcing decisions.”
Nonetheless, VIZIO’s suppliers have licenses for a vast array of digital technologies, and VIZIO believes that these licenses extend to VIZIO’s products. VIZIO has notified its suppliers of the lawsuit and expects full support and cooperation by them in the defense of the lawsuit. Accordingly, VIZIO does not believe that the suit will have a material adverse impact on VIZIO’s business.
VIZIO is actively engaged working to resolve this matter with its suppliers and the plaintiff LG Electronics to resolve this matter but nevertheless intends to defend its legal rights with vigor.
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