SAN DIEGO -- DivX, LLC, a pioneer in digital video technology, filed a breach of contract suit against Telechips, Inc. DivX has been licensing technology to Telechips since 2016. DivX alleges that a recent, independent audit uncovered numerous breaches of the parties’ agreements. For these breaches, DivX is seeking substantial damages and indemnities in the nine-figure range.

“Litigation is not our first choice, however, when a licensee does not honor its contractual obligations, it can over time have a significant, negative impact on our entire technology licensing ecosystem,” commented Noel Egnatios, DivX's CEO. “We are committed to defending our ecosystem and preserving the value of our DivX® brand and technology licensing program for our licensed partners.”

Since 2000, DivX has established itself as a global leader in the research and development of innovative digital video technology and will continue to license its broad portfolio to companies around the world.