[February 14, 2012]

Dolby Sues ArcSoft for Breach of Its License Agreements

Dolby Laboratories, Inc. (News - Alert) (NYSE:DLB), through a subsidiary, has sued one of its licensees, ArcSoft^®, Inc., with headquarters in Fremont, California, for failing to meet its contractual obligations with respect to sales and distribution of software containing Dolby's proprietary technology.

The lawsuit alleges that ArcSoft (News - Alert) breached its contract with Dolby by, among other things, failing to meet its obligation to properly report, pay royalties, and permit audits for sales of software containing Dolby technology to numerous original equipment manufacturers (OEMs), as well as through direct sales of its software products to consumers.

"Dolby has long-standing relationships wit hundreds of licensees worldwide, including the world's leading electronics, semiconductor, and software companies, based on decades of market-defining innovations and shared respect for Dolby's technology," said Andy Sherman, Dolby's General Counsel. "We have tried every possible alternative to resolve our issues outside of the court system, but Dolby is unfortunately left with no choice but to protect its contractual and intellectual property rights."

The lawsuit was filed today in San Francisco County Superior Court.

About Dolby Laboratories

Dolby Laboratories (NYSE: DLB) is the global leader in technologies that are essential elements in the best entertainment experiences. Founded in 1965 and best known for high-quality audio and surround sound, Dolby creates innovations that enrich entertainment at the movies, at home, or on the go. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. ArcSoft is a registered trademark of ArcSoft, Inc. S12/25353 DLB-G

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