For more information, contact Norm Schneider at 800 45-SMART.
SMART Devices, Panastereo, Inc, And SRS Labs, Inc Settle Lawsuits From Dolby Laboratories, Inc.
[Editorís Note: This is a different version of the ""Lawsuit Settlement Terms"" provided by Smart Devices, Inc. from that provided by Dolby Laboratories and published on the Webzine yesterday. Smart Devices claims this is the accurate representation of the ""Settlement.""] Smart Devices, Inc., Panastereo, Inc. and Dolby Laboratories, Inc. have agreed to settle all litigation between the parties. In 1998, Dolby filed a patent infringement lawsuit against Smart Devices, Inc. and Panastereo, Inc. over the design of Panastereoís CM333 NR cards used in cinema processors for playback of SR soundtracks, but the case was dismissed by Federal District Court in California. Undeterred, Dolby followed up by filing a trademark and false advertising lawsuit against Smart Devices, Inc., claiming exclusive rights to the term ""Surround EX"" in connection with Lucasfilmís new ""Star Wars: Episode I ñ The Phantom Menace"" motion picture. The trademark suit also involved false advertising allegations based on Dolbyís apparent belief that only Dolby equipment is capable of playing back soundtracks as sound engineers intend. Meanwhile, Panastereo improved upon the design of their NR cards and filed for patent protection. The new NR cards are designated CM353 cards and are now being shipped with all Panastereo processors. After eleven months of litigation, the parties agreed on a global settlement of all claims. Dolby has agreed that Panastereoís new CM353 NR cards avoid the claims of Dolbyís patents and has agreed to accept $1.00 in damages in return for Smart Devicesí admission of inadvertent infringement regarding the prior CM333 card design, which Smart Devices no longer sells. Dolby has also agreed that only if CM333 cards are returned by customers for service that they be replaced with the new cards and Smart Devices has agreed to do this. In addition, Smart Devices has adopted the name ""Circle Surround 3X"" for use with their professional and home theatre surround adapters in return for Dolby agreeing to dismiss their lawsuit alleging trademark infringement and false advertising and dropping their claims of patent infringement. Smart Devices has also agreed to continue to use truthful and accurate advertisements and marketing materials to promote its products and highlight their comparative advantages over products of competitors. Smart Devices and Panastereo are confident that the compromise reached by the parties allows all parties to move forward and concentrate on providing quality products to their customers, while eliminating wasted time and money associated with needless litigation. SMART Theatre Systems manufactures the worldís largest product line of cinema sound components and systems. Panastereo, Inc offers the finest ""studio grade"" playback equipment for professional cinemas and premium screening rooms. For more information, contact Norm Schneider at 800 45-SMART.