Dolby Laboratories and Smart Devices/Panastereo Settle Patent and Trademark Infringement Cases

Dolby Laboratories has announced a settlement in all litigation with Smart Devices over patent and trademark infringement.Dolby's 1998 patent lawsuit alleged that a Smart Devices module, which claimed to accurately decode Dolby SR motion picture encoded soundtracks, used technologies covered by Dolby patents. The two Dolby patents cited in the case cover elements of the analog audio processing system Dolby SR, which is the sound format used for almost all analog motion picture releases worldwide. The patents relate to various methods for noise reduction and processing loud sounds, resulting in wider frequency response and lower distortion.With the settlement, Smart admits that their NR card infringed Dolby patents, and to remedy the situation Smart is paying minimal damages to Dolby and destroying infringing cards. In addition, future products will be designed to avoid infringement.The 1999 trademark suit was settled with Smart agreeing to cease and desist from using Dolby's mark ""Surround EX"" or any mark sounding like ""EX"" or ""X"" for any of its products, and agreeing to adhere to strict guidelines for comparative advertising mentioning Dolby. All current literature and promotional materials using Surround EX related marks will be destroyed by Smart.Dolby also resolved claims against SRS Labs, which was a defendant along with Smart in the trademark suit. SRS has agreed to drop any claims to, and use of, Surround EX as well.