Motion Picture Industry Takes Action Against Chinese DVD Player Manufacturer For Content License Breach

November 8, 2006

The Motion Picture Association of America, Inc. (MPAA) today announced that the major film studios have filed a breach of contract lawsuit against AKI Digital Electrical Appliance Co. for violating the Content Scramble System (CSS) license agreement that protects DVDs against illegal reproduction and redistribution. “Full adherence to content protection licenses like the CSS agreement is a critical foundation for the motion picture industry’s efforts to continue to expand digital offerings so that consumers can enjoy content when, where and how they like.” said Dan Robbins, Vice President and Chief Technology Counsel for the MPAA. “Every company that has signed the license must honor its terms.” The lawsuit alleges that AKI Digital, a DVD-player manufacturer located in Shenzhen, China, has not properly implemented certain content protection requirements of the CSS license on their DVD players, which were manufactured under license from the DVD Copy Control Association. Compliance with the CSS license is critical in protecting copyrighted material from being illegally reproduced. Breach of the license interferes with content providers’ efforts to deliver content in new and innovative ways to consumers, and to expedite the widespread commercial introduction of next generation DVD discs and players, such as those utilizing the Blu-Ray and HD-DVD formats. The MPAA’s member companies have stepped up efforts to crack down on technology manufacturers that are in breach of the CSS license. Over the last two years, the studios have won seven such lawsuits against major DVD product manufacturers that have resulted in court-ordered injunctions prohibiting the manufacture of products that lack appropriate content security features. The studios plan to expand the enforcement campaign and have recently tested over 200 potentially suspect devices. The CSS license has provided the baseline protection that has enabled the studios to provide consumers with over 40,000 DVD titles. The motion picture studios are third-party beneficiaries of the CSS license and may enforce it against any licensee who fails to abide by its terms.

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