Big Boys Sue Vizio Over MPEG-2 Patents

Mitsubishi Electric, Samsung Electronics, Sony and Philips Electronics have had just enough of upstart California company Vizio Inc. and its cut-rate high-definition TVs that are eating into their market share.

A Sony exec even dismissed the cheapie models as “semi-non HDTV.”

Now, in a move that adds injury to that insult, the big TV makers have taken Vizio to court, alleging violations of their MPEG-2 compression technology, according to reports from Dow Jones Newswire and other sources.

The lawsuit, filed in federal court in New York Monday, says Vizio has failed to enter into a license for MPEG-2.

Tiny Vizio has disrupted the big-TV market using contract manufacturers to build the cheap sets, selling them through high-volume chains like Wal-Mart.