Pioneer Electronic Files Suit Against Technicolor

Technicolor Videocassette Inc., based in Camarillo, has vowed to defend itself “vigorously” against a patent-infringement lawsuit filed in connection with the firm’s fast-growing compact-disc duplicating unit.

The suit, filed by Discovision Associates, an Irvine-based subsidiary of Japan’s giant Pioneer Electronic Corp., charges Technicolor with infringing on three of Discovision’s U. S. patents in manufacturing and duplicating CDs and CD-ROMs. Discovision seeks unspecified damages and an injunction against further infringement.

CDs are the fastest-selling audio recordings. CD-ROMs look like CDs but can combine audio, video and text content. Technicolor has turned out millions of both kinds of items since starting to produce them in April for music distributors and others.

Dennis Fischel, Discovision’s president and chief executive, says Technicolor Videocassette, a subsidiary of Technicolor Inc., has refused to enter into a licensing agreement. He says his company manages a worldwide portfolio of 1,400 patents related to optical disc technology, the industry term for CD and CD-ROM production.

“Our policy is to make this technology widely available and to seek a return on our investment by licensing our patents on reasonable terms,” Fischel said. “It’s only fair to bring these proceedings against Technicolor Videocassette because we have a responsibility to our current licensees who are paying license fees.”

But John H. Oliphant, Technicolor Inc.’s senior vice president for legal affairs, says management at the Camarillo plant was assured by outside advisers that its production line would not infringe on patents belonging to Discovision or any other firm. “When Discovision raised the issue, we asked which patents they were referring to and they refused to be specific,” Oliphant said. “Then, without warning, they filed suit.”

Oliphant said Technicolor will “defend ourselves vigorously” against the action, filed earlier this month in U. S. District Court in Delaware.