California-based Sigma Designs and Taiwan's MediaTek make microchips that are used to decode a security feature known as CSS (Content Scrambling System). CSS is found in all legitimate copyright-protected DVDs. The microchips allow DVD players to unscramble the CSS-protected content and play the DVD.
The use of CSS is controlled by an industry group known as the DVD Copy Control Association, which licenses companies to manufacture DVD players and the microchips.
According to Reuters, the MPAA has now sued Sigma Designs and MediaTek, alleging that they sold their chips to companies that manufactured DVD players that were not compliant with DVD CCA requirements. This, says the MPAA, is in breach of the chipmakers' licences.
Potentially, the unauthorised players could have been used to illegally copy DVDs.
Neither Sigma Designs nor MediaTek has commented on the suits so far.
The action represents the latest stage in a fairly successful anti-piracy campaign by the MPAA.
In July, according to CNET News, the MPAA was awarded an injunction against another chip manufacturer – ESS Technology – whose chips were found in an unlicensed DVD player, while earlier this month the industry group settled a copyright infringement action brought against the now defunct 321 Studios.
That controversial software company was best known for DVD-copying software that circumvented anti-copying features in DVDs and let consumers make backup copies.