Chalk another one up for MPEG-LA, as the licensing group's members have dropped lawsuits against Vizio stemming from the one-time value HDTV company's refusal to license MPEG-2 technology, claiming it's suppliers had already paid the necessary fees. Despite Amtran's pleas, just like Target's TruTech brand televisions and DVD players, that argument appears to have quickly folded, . It remains to be seen what direct effect this will have on price, but between this and Vizio's notable Black Friday absence they must be serious about changing to a more upscale image, we wonder if Sony will invite them to a special reception. (Warning: PDF read link)

Target has apparently come around to MPEG-LA's way of thinking, agreeing to pay royalties to the licensing consortium for its store-brand TruTech HDTVs and DVD players that contain MPEG-2 technology, in return for dropping their pending patent enforcement action. How this affects Vizio's claim that it doesn't have to pay royalties because its suppliers already do remains to be seen, but the delta between the cheaper and cheapest displays could be narrower than ever soon. Check out the admittedly scant details beyond the read link (warning: PDF).

It's no secret the rest of the display industry hasn't been happy with Vizio shaking up the low end with its cheap HDTVs, and now Mitsubishi and others have joined in a lawsuit accusing the manufacturer of refusing to license necessary patents. The 15 patents allegedly violated are for MPEG-2 compression that Mitsu, Sony, Samsung, Philips, Thomson, JVC and Columbia University of New York claim Vizio refuses to license. Vizio says it don't need no stinking licenses, since its suppliers already have them and it believes these licenses extend to its products. MPEG-LA also filed a similar suit against Target's TruTech house brand of televisions; while we'll have to wait for a ruling on the case to see who is right, it seems if they can't compete with these lower prices, other manufacturers will make sure cheap HDTVs cost more to make. For its part, Vizio says it does not believe this suit will have a materially adverse impact on its business, so for now, let the low-price flat screens roll.

Read - Mitsubishi, Samsung Sue Vizio Over Video Patents
Read - VIZIO Comments on MPEG-2 Lawsuit By Electronics Competitors