MPEG LA has sued Opta Corporation and its subsidiary Opta Systems, formerly doing business as GoVideo, for breach of Opta Systems' MPEG-2 Patent Portfolio License and 1394 Patent Portfolio License (Contracts) with MPEG LA.

According to the complaint filed in the Delaware Court of Chancery, Opta Systems has breached its contractual obligations to MPEG LA by failing to report the manufacture and sale of MPEG-2 and 1394 Royalty Products and pay royalties as required by the Contracts. Opta Systems manufactured and sold DVD players and other devices incorporating patented MPEG-2 and IEEE 1394 technologies.

It is further alleged that Opta Systems' assets were later transferred to Opta Corporation to avoid paying royalties. MPEG LA seeks, among other things, monetary damages and an order enjoining Opta Systems and Opta Corporation from using MPEG-2 and 1394 patents.

Digital Products International, formerly GPX, which reportedly now has an exclusive licensing agreement with Opta Corporation for use of the GoVideo brand, is an MPEG-2 Patent Portfolio Licensee in good standing and is not a party to this action.

Story filed 30.09.07