InterDigital Initiates Global Litigation Proceedings Against Walt Disney
InterDigital Initiates Global Litigation Proceedings Against Walt Disney
Strap – Sues subsidiaries in the US, Brazil and Germany
Delaware-headquartered company, InterDigital has initiated global litigation proceedings against entertainment giant Walt Disney Company for infringing its video encoding standard essential patents.
The US technology firm sued Disney and its subsidiaries Disney+, Hulu and ESPN+ in the US District Court, Central District of California, Brazil, Germany, and the local divisions of Mannheim and Düsseldorf of the Unified Patent Court.
Josh Schmidt, the chief legal officer of Interdigital said, “Our video technologies enable Disney to efficiently stream content and enhance the user experience.”
He added: “We always prefer to sign licence agreements through amicable negotiation, but we are committed to receiving fair compensation for our groundbreaking research, which allows us to continue to invest in the next generation of technology.”
In a complaint filed recently in California, InterDigital said that in July 2022, it approached Disney requesting licensing of the patents, but the talks failed. Disney is “not authorized to use our patents.”
In the US, InterDigital, represented by law firm McKool Smith, is suing for the alleged infringement of five video encoding patents - 8,406,301, 10,805,610, 11,381,818, 9,185,268 and 8,085,297. It is seeking a permanent injunction, damages and a jury trial.
The technology refers to encoding video into a compressed form and decoding it to be displayed and viewed. The technology allows efficient transmission and maximizing quality.
InterDigital said that its foundational research in video and other related technologies “underpins the viability of the entire streaming industry. It is forecasted by third parties to generate over $400bn revenue in 2025 across subscription and advertising supported platforms, and on social media.”
Meanwhile, Disney has over 250 million paid subscribers across Disney+, ESPN+ and Hulu.
InterDigital claimed, “With the help of our innovation, Disney has created a profitable business spread across its multiple platforms. In its recent financial results, it reported an annual revenue of $25 billion from streaming business.”
It reiterated that “amicable negotiation” was always the preferred path to signing new licensing agreements. However, from “time to time, enforcement is required to ensure we receive fair compensation for our ground-breaking research.”
The US action is led by McKool Smith principal Alan P Block, based in Los Angeles. In Munich, it is being represented by German boutique IP firm Arnold Ruess and UPC, and in Brazil by Licks Attorneys.
