In the past five years, Irvine-based Vizio Holding Corp. has settled lawsuits with Advanced Micro Devices Inc. for $39 million, and with AmTRAN Technology Co. for $8.2 million.
Those costs haven’t hit the bottom line for the TV and advertising firm, which went public last year and now sports a $1.7 billion valuation (NYSE: VZIO).
Vizio annual report describes a legal moat built around it.
“Historically, Vizio has been contractually indemnified and reimbursed by its manufacturers for most intellectual property royalty obligations and commitments,” its annual report said.
That may explain why it has relatively little accrued legal fees, which were $1.9 million in 2021, down from $3.1 million in the prior year.
That indemnification could soon be put to the test as last year, Maxell Ltd. filed a complaint in United States District Court for the Central District of California alleging several of its patents were infringed upon by Vizio televisions.
