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Antitrust Tactics Alleged in Blu-Ray Discs

SAN JOSE (CN) - In a federal antitrust complaint, Zoran, an integrated circuits company, claims DTS (fka Digital Theater Systems) monopolized Blu-Ray disc technology by inducing the Blu-Ray Disc Association to adopt a standard for high-definition DVDs that include DTS patents as a mandatory element.

DTS holds multiple patents on sound-data compression. Some of these have been incorporated into the Blu-Ray Disc Association's standards, Zoran says.

Zoran, based in Agoura Hills, says that standards-setting organizations require members to license their products on "fair, reasonable and non-discriminatory terms."

Zoran claims DTS is not doing that, demanding "upfront payments of millions of dollars for a license from DTS for its essential IPR (intellectual property rights)."

This restrains competition in Blu-Ray devices and among chip manufacturers, in violation of the Sherman Act, Zoran says.

Zoran demands treble damages and an injunction. It is represented by Jeffrey Shohet with DLA Piper.

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