China’s leading television manufacturer, Skyworth Digital Holdings, said on August 18 that the US-listed Digital Theater Systems is suing the company over it allegedly illegal use of trademarks and “certain know-how.” Digital Theater launched actions against two Skyworth subsidiaries, Skyworth Multimedia International and Skyworth Sales (Hong Kong) on August 5 to restrain them from using the name or mark “DTS” or “dts,” and for the use of “certain know-how allegedly owned by Digital Theater,” Skyworth stated on its websThe Chinese television-maker said the litigation would not hurt normal business operations, as there is no material reliance by the group on the know-how and trademarks in question. According to the press release, Skyworth signed a contract with Digital Theater in October 2001 allowing the former to use DTS technology and the trademark.

Skyworth said it would make further announcements as appropriate. Huang Hongsheng, board director of Skyworth, told Beijing Today on August 22 that an agreement had been reached between the two sides, but was reluctant to reveal the details.

The suit demands payment of damages and the surrender of profits earned from the alleged infringements, as well as the handing-over of allegedly infringing products and materials. The lawsuit is the second such case since US-based Cisco filed suit against Huawei Technologies over alleged copying of Cisco’s intellectual property in January 2003

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