With the global economy being so poor, flat panel TV sales and sales of other major electronic items are slowing and many manufacturers are announcing massive losses. Some companies are doing better than others are and despite the poor economy -- Vizio announced record Q4 2008 holiday sales recently.

Vizio announced that it has filed a request with the FCC to require Funai Electronics Co and its subsidiary Funai Corporation to comply with patent license agreements imposed by the FCC when it adopted the rules for digital TV standards. Vizio alleges that Funai is using unreasonable and discriminatory patent enforcement policies while the FCC is considering a petition for a declaratory ruling.

The pending declaratory action seeks protection from excessive DTV patent charges that have collectively grown to more than $1 billion. According to Vizio Funai is demanding what it calls "windfall royalties" for a single patent that is equivalent to the amount paid for a library of over 30 patents form seven different companies.

Funai is threatening to bar Vizio products from the U.S. market -- the only market that Vizio operates in -- if it refuses to pay what Vizio terms "extortionate demands" for licensing fees. Vizio's Laynie Newsome said in a statement, "It is VIZIO's policy to minimize unnecessary costs that are absorbed by U.S. consumers. We respect the rights of intellectual property, thoroughly investigate all claims, and vigorously defend our legal rights when we feel a patent is invalid and not infringed."

Vizio has already taken Funai to court over antitrust issues resulting in one Funai patent being overturned.