The
MPAA sued
ESS Technology in April 2004, as part of a crackdown on the illegal distribution of Content Scramble System (
CSS) chips, which are used to unlock the security features on copyrighted movies on
DVDs.CSS is found in all legitimate copyright-protected
DVDs. The microchips in
DVD players allow them to unscramble the
CSS-protected content and play the
DVD.But the use of
CSS is controlled by an industry group known as the
DVD Copy Control Association, which licenses companies to manufacture
DVD players and the microchips. The licence forbids the sale of
CSS chips to
DVD player and computer manufacturers that do not have a valid
CSS license because such entities have no contractual obligations to implement appropriate security features.Potentially, says the
MPAA, unauthorised players could be used to illegally copy
DVDs.Fremont, California-based
ESS Technology, which was accused of selling chips to unlicensed manufacturers, has now agreed to sell chips only to
DVDCCA licensees."
ESS totally supports the enforcement of all parties' valid intellectual property rights and is committed to being a leader in enabling content protection features," said Robert Blair, President and
CEO of
ESS. "We look forward to working with the motion picture industry in their world-wide enforcement efforts and in the development of next-generation anti-piracy technology.""Our member companies are pleased to have settled this lawsuit, and believe that the terms of the settlement will help enable the member companies to ensure correct procedures are followed by
ESS and all other chip manufacturers in the future," said Dan Robbins, Chief Technology Counsel for the
MPAA.