[Techtaffy Newsdesk]

Dolby Laboratories has sued one of its licensees, ArcSoft, with headquarters in Fremont, California, for what it says is failing to meet its contractual obligations with respect to sales and distribution of software containing Dolby’s proprietary technology.

The lawsuit alleges that ArcSoft 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.

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