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Vizio: Deep Legal Moat

The 20-member team of lawyers at Irvine-based Vizio Holding Corp. (NYSE: VZIO) rarely have a dull moment.

This year has been no different for the seller of televisions and advertising services.

In April, the company announced a deal with Nielsen (NYSE: NLSN) to measure audiences on an expanded roster of 400 local television stations. In July, it brought together representatives of 65 organizations for its first Developer Conference. Then in August, it added four additional free channels from The E.W. Scripps Co. (Nasdaq: SSP), including ION.

That’s on top of the usual preparation of SEC filings, quarterly reports and investor presentations.

It’s also dealing with a lawsuit filed in 2021 by Maxell Ltd. alleging several of its patents were infringed upon by Vizio televisions. The company disputes the claims and intends “vigorously” to defend the lawsuit, which is in the pleadings stage.

The legal team’s work, led by General Counsel Jerry Huang and Deputy General Counsel Dennis Yeoh, is supported by outside counsel across nearly a dozen law firms. Last November, the company was recognized with the In-House Legal Team Award during the Business Journal’s General Counsel of the Year Awards event.

A year ago, the team managed an initial public offering in the middle of a pandemic, a doubling of the employee headcount, contracts, litigation and navigating ever-changing regulatory waters.

In the past five years, Vizio has settled lawsuits with Advanced Micro Devices Inc. for $39 million, and with AmTRAN Technology Co. for $8.2 million.

Vizio’s 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.

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Peter J. Brennan
Peter J. Brennan
With four decades of experience in journalism, Peter J. Brennan has built a career that spans diverse news topics and global coverage. From reporting on wars, narcotics trafficking, and natural disasters to analyzing business and financial markets, Peter’s work reflects a commitment to impactful storytelling. Peter’s association with the Orange County Business Journal began in 1997, where he worked until 2000 before moving to Bloomberg News. During his 15 years at Bloomberg, his reporting often influenced financial markets, with headlines and articles moving the market caps of major companies by hundreds of millions of dollars. In 2017, Peter returned to the Orange County Business Journal as Financial Editor, bringing his heavy business industry expertise. Over the years, he advanced to Executive Editor and, in 2024, was named Editor-in-Chief. Peter’s work has been featured in prestigious publications such as The New York Times and The Washington Post, and he has appeared on CNN, CBC, BBC, and Bloomberg TV. A Kiplinger Fellowship recipient at The Ohio State University, he leads the Business Journal with a dedication to uncovering stories that matter and shaping the local business community and beyond.
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