The judge in the California district court rejected the lawsuit with a summary judgement and stated that JVC had already fully exploited its patent rights by the licensing of DVD and Blu-ray discs. Those using the software solutions to write or read discs would be no more guilty of a direct patent infringement than Nero would be of indirect patent infringement.
JVC filed an appeal against the district court's ruling that was rejected last Monday by the Federal Court of Appeals, Washington D.C.. The court upheld the first ruling, establishing a precedent, and also ruled unanimously that the use of the software does not constitute a direct patent infringement by consumers, because they are using the software in connection with already licensed storage media. An indirect patent infringement by Nero was therefore also excluded.
The verdict is likely to have a strong ripple effect on the software industry. Nero believes it will curb the future abuse of patent pool patents and prevent patent holders attempts to "double dip" i.e. claim more than one payment in a commercialization chain.