Acacia Research Subsidiary Settles Lawsuit With Pioneer Electronics

Business Wire, Jan 31, 2001

Business Editors

PASADENA, Calif.--(BUSINESS WIRE)--Jan. 31, 2001

Acacia Research Corporation (Nasdaq:ACRI) announced today that its majority-owned subsidiary, Soundview Technologies, has settled its lawsuit involving U.S. Patent 4,554,584 relating to television, video, and audio blanking technology, commonly known as V-chip technology, with Pioneer Electronics (USA) Inc., an affiliate of Pioneer Corporation (NYSE:PIO).

Acacia Research recently announced that Soundview will receive payment and grant non-exclusive licenses for the same patent to Philips Electronics (NYSE:PHG) and Hitachi (NYSE:HIT) as part of Settlement Agreements regarding pending litigation brought by Soundview.

Soundview's V-chip technology, invented by Carl Elam, uses a television's receiver circuitry to decode content rating information sent as part of the broadcast signal. By utilizing the broadcast signal that carries closed-caption data, Soundview's technology is relatively inexpensive to implement.

The industry and its trade association adopted this method as the technical standard for new television sets sold in the United States that are required to have V-chip technology. Federal law requires implementation of the industry-adopted standard.

The 1996 Telecommunications Act requires all TV manufacturers to include V-chip technology in new television sets with screens 13 inches or larger sold in the U.S. after January 1, 2000. Approximately 25 million new televisions are sold each year in the United States.

Soundview has filed a federal patent and antitrust lawsuit against television manufacturers, the Consumer Electronics Manufacturers Association, and the Consumer Electronics Association. In its lawsuit, pending before the United States District Court for the District of Connecticut, Soundview alleges that television sets fitted with V-chips infringe Soundview's patent.

Additionally, Soundview alleges that the Consumer Electronics Manufacturers Association has induced infringement of the patent and that the defendants have violated the federal Clayton and Sherman Antitrust Acts by engaging in collusive attempts to prevent others in the electronics and television broadcasting industries from entering into licensing agreements with Soundview Technologies.

Soundview is seeking monetary damages, an injunction preventing unlicensed use of its patented technology, and other remedies. Pioneer Electronics denied all liability.

Acacia Research owns 66.7% of Soundview Technologies.

About Soundview Technologies Incorporated

Soundview Technologies has acquired and developed intellectual property in the telecommunications field, including audio and video blanking systems, also known as V-chip technology.

Soundview owns the exclusive right and title to U.S. Patent No. 4,554,584, which describes a cost efficient method for implementing the V-chip system in parallel with the existing closed-captioning circuits already in place in televisions.

About Acacia Research Corporation

Acacia Research develops and operates life science and enabling technology companies. The company's core technology opportunity has been developed through its subsidiary, CombiMatrix Corporation. Acacia Research intends to build and acquire companies in the life science and material science fields that will utilize CombiMatrix's biochip technology. Acacia Research's Web site is located at www.acaciaresearch.com.