Nero Antitrust Claims Against MPEG LA – Recent Court Action

What does the recent district court’s dismissal of Nero’s antitrust claim really mean? Perhaps, not too much. The Court dismissed Nero’s antitrust claim with leave to amend. This is a common procedural move when the Court needs additional factual information to validate that a statutory claim has been made.  At this stage of a proceeding, the Court is not rendering decisions on the merits of the claim, only whether the pleadings themselves properly state a claim.

It seems the Court understands and accepts Nero’s antitrust legal theory.  Otherwise, the Court would not have given Nero leave to allege additional facts supporting that theory.  It seems that an amended complaint that adds specific patent expiration dates and examples of nonessential patents in the MPEG-2 patent portfolio of 900+ patents would be enough to carry the day.

Some other perspectives and background: