Dahua Sued By H.265 Licensor
While Hikvision has never obtained Access Advance's HVEC H.265 license, Dahua did, but Dahua is now out of compliance and the licensor is suing them in New York State Court for more than $350,000, an amount that IPVM estimates is low.
In this report, IPVM examines the allegations and Dahua USA's defense that Dahua should be sued in China.
Out ** **********
***** ** *** ** * ********* that****** *******, * ****** **** ********* ***************** ** ***** "*** ** **********":
Case ***** ** *** **** ***** *****
****** ******* ****** **-**** **************** **** ******** ***** (***) *** Dahua *** ** **** **, ****, in *** ****:
***** ****** ******* **** ******** ***** and ***** *** ** ******** ********, Access ******* ****** **** *** ******** term "*****" ** ***** ** **** entities ** * "****** **********" ********** its ***** *******:
**** ********* **** *** **** “*****” to ***** ** ***single ********** that consists of the parent ***********, Zhejiang Dahua, and *** ************, ********* ***alter ***, ***** ***. The Complaint uses the terms “Zhejiang Dahua” and “Dahua USA,” as appropriate, when necessary to refer to the parent corporation in China and the U.S.-based subsidiary. [emphasis added]
Key **********: ***** ****** ** *** ********* ***** ** ****
*** *** ********** ** **** ***** has ****** ** *** ********* ** Access ******* ***** ** **** (**** 2020) ******* ********* *.*** *** *** in *** ************ ********:
***** *** **** ****** ** *** the ******** ********* ** ****** ******* since ** ***** *** ***** ******* of **** (********* **** *, ****), and *** ****** ** ****** *** sales *** *** ****** ******* ** 2020 *** *** ***** ******* ** 2021.
****** ******* ********* ***** **** ** least $***,*** *** ** ****, ** 2020, *** ** ****.
Royalties **** ******** ***
** ******** *** ********* **** *** low ******** ** (*) *****'* ********* production *** (*) ****** ******* ****** rates:
- ***** $***,*** ** ********* *** * quarters ** ******* ********** ** ~**** a ******* ******* *** *** ****
- ** ********, ** ******** ***** (**** ~$4 ******* ****** *******) ******** **** millions ** ******* ***** *.*** ********.
- ***** ***** ** ****** ******* ******* ~$0.10 *** ******, ***** *** ****** owed (**** *****) ** ~**** * million *******, *** ******** * ******* Dahua *.*** ******* *** **** ($***,*** / * ******* = $*.**).
- ** ********, **** ********* ********** **** $*.** ** $*.** *** unit *** * ******** *******.
****** ******* ******* ***** **** *** let **** ***** *****'* ***** *** records, ** ********. ****** ******* ********* that ***** ****** *** ******* ** calculating *** **** ******* ** *** and *** "************":
** ******* ** ****** *** **-**** audit ******** ** *** ****** ******* Agreement, ***** *** ********* ****** ******* from *********** *** **** ****** ** Dahua’s **********, ** ************, ** ********* due ***** *** ****** ******* *********, including ********* *** ***** ** *** uses ** *** ****/*.*** ******** ** certain ******** ***** ** *** ********* date ** *** **** ****** ******* Agreement.
Patent ******* ********* *** ********* ******* ********* ******
***** *** ****** *******'* ********* ************ is ******** ** *** ******** *********, the ****** ******* ********* (***) *** Trademark ******* ********* (***), ********* ** Access *******'* *********.
****** ******* ******* ***** ************ * ********* ******** *****'* ********* **** ********** ******* *** **** Zhejiang ***** *** **** ***** *** a ******* ** *** **** *******:
****** ******* ******* ** *****—that **, **** ******** ***** *** ***** *** ** ** ********* ** ******** *****—a license to patents that are essential to the High Efficiency Video Coding (“HEVC/H.265”) video standard. [emphasis added]
*** *** "******* ** ***** *** its **********, ********* ***** ***, * patent ******* ***** *** ***** *** conditions *** ***** ** *** **** Patent ******* *********." ***** *** *** "granted ** ***** *** *** **********, including ***** ***, * ******* ** use *** **** ******* **** ***** the ***** *** ********** *** ***** in *** **** ********* ******* *********," according ** *** *********.
**** ********** *** ************ *** **** not **** **** ********* ** *** public. ** ******* ****, *****'* ******* did ****** **** ********** ** *** docket, ******* **** ******** ***** ****.
******** ****** ******* *** ******** ***** that ** *** ******** **** **********, Dahua *** ****** ** ****** *** alleged ********, *** ********* *******.
Zhejiang ***** ** ****** ***
******** *****, *****'* ***'* ****** *******, has *** ********* ** ****** *******'* complaint. ******** *, **** ********** ****** *******'* ******* ***** ** extend ******* ***** ***** *, ****, and ******** ***** **** ***** ***** it ** ********** ******. *******, ***** USA's ******* ** *** ************ ******** Dahua, ********* ** ****** *******'* ******.
Dahua *** ******* ********
******* ***'* ****** ** *******, *** ******* ******* ** ****** contract ****** ******* ***** *** *** Access *******; **** *** *** **** court **** *** **** ******** ************ over ***** ***, * ********** *******; and **** *** **** ** * less ********** ***** ** ***** ** litigate, ******** ** *****.
Dahua ***: ** *** *** **** ********
***** *** ******* **** **** ** not **** * ******** **** ****** Advance *** **** ***** *** *** inappropriately ****** ** **** ******** *****, the ****** ********* ** *** *** and *** *********:
*****, ****** ******* ************* ***** ***** USA **** ******** *****, **** ****** Dahua *** ** *** * ***** to *** ********** ********** ******** ******* Zhejiang ***** *** ****** *******.Access ******* *** *** ******* *** ********* ** ** ********* **** ***** *** ** *** ****** ** ***** ***. [emphasis added]
******* ****** *******’* ********* ******* ***** USA ***** ** ****** * ****** of ******** ** *** ***** *** specific ***********, *** ***** ****** ******* the **** ******* ***** *** *** failure ** ***** * *****
***** *** **** **** ** *** to ****** **** *** ********* **** been ********** ******* ****** ******* ***** Zhejiang ***** ** ***-********* **** ********* standards ** *** *******:
** ****, ** [****** *******] *** terminated *** ********** ** ******* ******** Dahua ** ***-********* ** *** *******.
***** *** ******* *** **** ****** Advance **** *** ************ **** "***** USA" ** *** ******** *******, ******** this ***** ****** ******* **** *** truly ******* **** ***** *** ** a ********:
** ****** ******* ***** ******** **** Dahua *** *** * ********, ** should **** ****** ***** *** ** its ******** *******. ******* ******** ***** USA ** * ********, ****** ******* has ** *********** ** ***** *** under *** ******* ********* *** ****** allege ********* ***********.
Dahua ***: ***** *** *** ******** ***** *** ********
***** *** ******* ********* ** ******** itself **** ******** ***** **** ********* **** *** ****, *** ********* ** ***** ***, stating:
****** ******* *** ***** ********* ***** USA *** ******* ******* ******** ** the ******** ******* ** *** *********.
***** *** *** ***** **** *** payments ** ****** *******.
****** ******* *** ***** ********* ***** USA *** ***** ******** ** *** contracts ******* ** *** *********.
****** ******* *** ***** ********* ***** USA *** *** ********* ****** ******** to *** ********* ******* ** *** Complaint.
***** *** **** *** **** ****** to ** ****** *** ******** ***** financial ********* ******** ** *** ********* alleged ** *** *********.
Access *******: ***** *** *** ******** ***** *** "***** ****"
****** *******, ** ******* ******** *****'* *****, ********* **** ***** *** ** an "***** ***" ** ******** *****, citing ******* ********* *********** ***** *** and ******** ***** ********** *** **** Zhejiang ***** ********** *** ***** ** Dahua ***:
*** *******, *** ******* ********* ******* that ******** ***** ******** ***** *** Dahua *** ** *** ********* *** in *** ****** ******. ** ********, Dahua ***’* ******* ****** **** ** “provides ***** *** ******* ********** *** U.S. *** ******” *** ***** ********. Zhejiang ***** *** ***** *** **** common ******** *** *********. *** ******* Complaint ******* **** *** ****** ********** of ***** *** *** **** ****** executives ** ******** *****. *** ***** USA’s **** ******** ** *** ******** and ********* ** ******** *****. ******** Dahua *** **** ********** *** ***** of ***** ***. ******** ***** *** Dahua *** **** ***** ****** ***** and *** ****** ********* ********** ** the ****** ******.
Dahua ***: ***** ** ****** ***** *** *******
***** *** **** ******* ** * personal ************ ***** ** *** ****** to *******, ******* **** * *** York ***** **** *** **** ************ over * ********** ******* **** ***** USA *** **** ***** ** * better ***** ** ******** **** *******.
***** *** **** * ****** ** reasons *** ** ******** *** *** York ***** **** *** **** ************ over *** *******, ********* **** ***** USA **** *** *** ******** ** New ****, **** *** ******** ************* or ***** ********** ** *** ****, etc.:
****** *** ***** * ***** ** the ********** *** ****** ******* ** do **** *** ********** ** *****, this ***** **** *** **** ******** jurisdiction **** ***** ***. ** * California ***********, ***** *** **** *** have *** ************ ** *** ****, does *** ***, ****, *****, ******* or ******* *** **** ** ******** property ** *** ****, **** *** maintain ********, ********* ** **** *** shareholders ** ******* ** *** **** and **** *** ******** * ******** address, ********* ******* ** *** ******* in *** ****. ** ********, ***** USA **** *** ******** ************* ** sales ********** ** *** ****.
***** *** ********* ***** ** * better ***** *** ********** ***** **** is ***** *** ********* (******** *****) is *******, ***** *** ********* ** the ******* ** *** ******** ***** be, *** ***** *** ******** ********* could ** *****:
****, ** *** ***, ** *** witnesses **** ***** ** ********* ** proving ** ********** *** ****** ** contract ********* ******** ***** ***** ** in *****, ** *** ****, ** not ***, ** *** ******** *********. Unlike ****** ** *** ****, ****** in ***** ***** ** **** ** compel *** ********** ** ********* ******* in ***** *** ***** **** ******** testimony.
Forum ********* ****** ** **********
*********, ********* **** ******** ** *** state ***** ****** *** ********* ** defendant ** ********** ** *************. ****** Advance ** * ********-********** *********** ************* in ******, **, *** **** ********* was ***** ** *** ****. ****** Advance ********* ** *** ********* **** Dahua, ** ******* *** *** *** TLA, *** ****** ** ******** *** issues ********* *** ********** ** *** York:
** **** ** ***** **********, ***** consented ** *** ************ ** ***** or ******* ****** ** *** ***** of *** ****, *** ******* ****** any ********* ** *** ************ ** venue ** **** ******.
*******, ***** *** ********** ******** ****** Advance's *****, ******* ** ** * non-party ** *** **********, *********, *** forum ********* ****** **** *** ***** to ***** ***:
*******, ******* ***** *** ** *** a ***** ** *** ********** ** issue, *** ***** ********* ******* ** not ***** ** **.
Access *******: ********** ** ***** **** *** **** *****
****** ******* ***** ***** **** ** has ** ********* ** ******** ** China, ******* **** "** ** ****** the *****" ******* *** **** ** inconvenient *** ***** *** *** ******** Dahua, ******* "*** ******* **** ******* chosen *** **** ** *** *********** forum."
**** ** ***** *** ** ******* found *** ** ** *** ***** ego ** ******** *****, *** ****** against ******** ***** **** ***** ** litigated ** *** **** ******* ** the *** *** *** **** ******** Dahua ****** ******, ****** ******* *******. Therefore, "** ***** ****** ***** *** the ****** ******* ***** ***, * California ***********, ** ** ********* ** China ***** *** ****** ******* ******** Dahua ******* **** ** *** ****."
Access *******: *** **** *** ********* ** ******** **** ***** ***** ** ********
******** ***** *** ****** **** *** New **** ***** *** ** ******** jurisdiction **** *** *******, ****** ******* maintained **** ***** *** *** ****** business ******** ** *** **** ** avail ****** ** *** **** ******.
****** ******* ******* *** **** "***** USA *** ** ***** *** ***** representatives ** *** ****" *** "* 'Distribution ***** *******' ******* ** ********, New ****."
******* ********* ** ****** ******* ***** *** Dahua *** ***** **** ******* ** the *** **** ******:
******* *** *** ******** ******* ** *** Syracuse-based ***** ************ ***** *******:
****** ******* **** ******* **** ***** products *** "**** *********** ** ****** stores ** *** ****" *** ********** ******* ** ***** ********* **** online ** *&* ***** ********* *** ********* *** ********* ** New ****.
Court ****** ***** *** ******
*****'* ****** ** ******* *** ****** by *** ***** **** ***** ********* ******** **, ****, ****** **** jurisdictional ********* *** *****:
********* *** **** * ********** ***** to ************ ************ **** ***** ** entitle *** ********* ** ******* ************** discovery.
*******, *** ***** *** *** **** a ****** ** ******* ***** *** is *** ***** *** ** ******** Dahua, ******* ***** *** ** ******* to *** **********, *** ******* *** York ** ****** ** ************ *****. These ****** **** ** ******* "******* the ****** ** *** ************** *********."
Access *******: ** *******, *****: ** ********
****** ******* **** **** **** ** "does *** **** *** ******* ** offer ** **** ****." ***** *** did *** ******* ** ****'* ******* for *******.
**** **** ******** ** ******* *** case *** ****** ***********, ********* **** Zhejiang ***** ******** ** *** *********.
**** *********, ********!
*** ***** **** ** ********** ** that ** *** ***** ********* ** this, ***** ** ***** *** **** of *** ***** *** *****.
****, *********** *** ***** **** *** try ** ****** ** ******** **** with ****, ***** **** **** ***'* dispute ******* *** ******* *** ** they ***** *** ********** ******* ** why **** ****** *** ***. *** for *****'* ***** (~$* ******* ****** revenue), *** ***** ******** **** ** like * *** ** ****** **** a **** *** * ****** ******.