InterDigital Inc. and related entities sued Disney and its streaming subsidiaries including Disney+, Hulu and ESPN+ over five patents covering video coding technology. The patents address adaptive weighting of reference pictures in video encoding, intra coding methods for pixel groups, chromatic correction for displays, and user interface modification systems. Disney countered that InterDigital breached RAND licensing obligations and challenged the patents' validity.
During claim construction proceedings, Disney argued that claim language in InterDigital's '301 Patent was indefinite because it created multiple plausible interpretations about how weighting factors relate to reference pictures. Judge Hsu disagreed, finding Disney failed to meet the clear and convincing evidence standard required to overcome a patent's presumption of validity. 'If the patentee sought to mirror the same language it used in Claim 8, it could have easily done so,' Hsu wrote, noting the patentee deliberately chose different language.
The case reached the claim construction stage after Disney filed counterclaims alleging breach of reasonable and non-discriminatory licensing terms. The patents at issue include methods for adaptive weighting of reference pictures, intra coding of pixel blocks, chromatic correction systems, and user interface modification techniques. The parties had already agreed on constructions for terms like 'side information' and 'validity information' in the '297 Patent.
The ruling sets the stage for further proceedings on the underlying infringement claims. InterDigital's patents target core streaming video technologies, potentially affecting Disney's major platforms that serve millions of subscribers. The case highlights ongoing tensions between patent holders and major technology companies over standard-essential patents and licensing obligations in the video streaming industry.