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VIZIO Wins Favorable Federal Circuit Appeal Ruling

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Court ruling holds that VIZIO 'work-around' products do not infringe competitor's patent

VIZIO today announced that the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. issued a ruling yesterday holding that certain "work-around" VIZIO digital television products do not infringe U.S. Patent No. 6,115,074 (the "'074 patent"), which is owned by Funai Electric Co., Ltd. and Funai Corporation. In so ruling, the Federal Circuit reversed a prior decision by the International Trade Commission ("ITC") excluding certain VIZIO television products from importation into the U.S. while affirming in part the ITC's findings on certain "legacy" products, which are no longer being sold.

"The Federal Circuit's ruling is significant, and we are gratified that the opinion vindicated our non-infringement position on the 'work-around' products. Those 'work-around' products were the result of an extraordinary effort by VIZIO in technological development, and allowed us to overcome the challenges posed by one of our competitors," stated Rob Brinkman, VIZIO's Vice President of Operations and Administration. "As an intellectual property owner, VIZIO respects intellectual property rights, and has a strong policy of enforcing its rights against infringers, in a responsible manner. VIZIO is also committed to fully defend against any unjust claims asserted against it. We are prepared to fairly compete on all levels," said Mr. Brinkman.

The ITC had previously issued an exclusion order that was the subject of the appellate decision. While the Federal Circuit considered VIZIO's appeal, U.S. Customs found that certain VIZIO products were outside of the scope of the ITC's order, resulting in the continued importation of VIZIO products. "We at VIZIO have worked diligently and aggressively to ensure that our valued customers and end users have uninterrupted access to our products. We have strong confidence in our position, and stand firmly behind our technology. We are grateful for our loyal customers and their continued support for VIZIO," stated Laynie Newsome, VIZIO's Chief Sales Officer. "As VIZIO continues to innovate, we are bringing to market exciting new technologies such as VIZIO Internet Apps (VIA), Connected HDTVs and VIA Connected Blu-ray Players, Razor LED HDTVs, TruLED HDTVs with 480Hz SPS and Smart Dimming features, 3D HDTVs, HD Audio Sound Bars, Wireless Headphones, HD Wireless Routers, Internet Radios, Mobile TVs and many other accessories. VIZIO will continue to improve and offer these technology-packed VIZIO products to our retail partners and to our valued customers."

No. 2009-1386.
United States Court of Appeals, Federal Circuit.
Decided: May 26, 2010

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