Roxio Answers and Countersues in Gracenote Lawsuit
Milpitas, Calif., June 21, 2001 - Roxio, Inc. (Nasdaq:ROXI), The Digital Media Company, today announced that it has responded to the lawsuit filed by Gracenote, Inc. on May 10, 2001 and filed a number of additional counterclaims. Roxio alleges that Gracenote fraudulently obtained its '680 patent and its CDDB trademark by failing to disclose certain key information to the U.S. Patent and Trademark Office. The counterclaims filed by Roxio also include antitrust claims based on Gracenote's alleged misuse of the '680 patent and breach of contract claims based upon Gracenote's termination of service to Roxio's end users. On May 17, 2001, Gracenote filed a motion for a temporary restraining order seeking to block Roxio from shipping certain of its products. On May 24, 2001, the Court denied Gracenote's request finding that Gracenote failed to demonstrate a likelihood of success on the merits.
"Gracenote sought to obtain patent rights to publicly released software without informing the U.S. Patent Office of the prior art, sought to trademark a generic acronym [CDDB] by misleading the U.S. Trademark Office and sought to obtain copyright protection for the work of the CDDB contributors," said Bill Growney, Director of Legal Affairs at Roxio, Inc. "Having built its database by promising the public that the database was to be freely accessible, Gracenote is now attempting to misappropriate and monopolize access to public information, and seeks to impose supracompetitive pricing for that access."
Roxio, a division of Sonic Solutions, develops and markets the best-selling digital media software in the world. Roxio offers award-winning software products for CD/DVD burning, photo editing and video editing and has an installed base of over 150 million
users. Roxio distributes its products globally through strategic partnerships with major hardware manufacturers, through leading
retailers, through Internet partnerships and through direct sales at www.roxio.com. Roxio's
parent company, Sonic Solutions (NASDAQ: SNIC;
http://www.sonic.com) is the leader in digital media software and provides a broad range of software
tools and applications for creative professionals, business and home users and technology partners. Sonic's products range from professional
DVD authoring systems and interactive content delivery technologies that are used to produce the majority of Hollywood movies released on DVD,
to the award-winning Roxio- and Sonic-branded CD and DVD creation, playback and backup applications that have become the premiere solutions
for consumers and business users worldwide. Sonic's AuthorScript® is the de facto standard for CD and DVD burning and formatting and has
been licensed by major software and hardware manufacturers, including Adobe, Broadcom, Microsoft, Scientific-Atlanta, Sony, and many others.
Sonic Solutions is headquartered in Marin County, California.
Sonic, the Sonic logo, Sonic Solutions, Roxio, MyDVD, CineMagic, Plug & Burn, LiveShare, Roxio Easy Media Creator, and
AuthorScript are trademarks or registered trademarks of Sonic Solutions or its subsidiaries in the United States and/or other
countries. Dolby is a trademark of Dolby Laboratories. All other company or product names are trademarks of their respective
owners and, in some cases, are used by Sonic Solutions under license. Specifications, pricing and delivery schedules are subject
to change without notice.