The Massachusetts Institute of Technology will receive $30 million from Dolby Laboratories Inc. over the next 10 years for the school's role in the 1993
incorporation of Dolby's audio technology into the U.S. digital-television
standard.
MIT had developed a competing standard and agreed to share royalties with
Dolby if either technology was selected by the Grand Alliance, the industry
group that ultimately proposed a digital-TV standard to the Federal Communications
Commission.
Dolby later refused to pay up, citing ambiguity in the contract. The
university sued in 1997, and a settlement was reached in April after a six-day
trial.
Terms of the deal, originally confidential, were confirmed by university
officials two weeks ago when uncovered by The Tech, MIT's student
newspaper.
MIT's agreement with Dolby was unknown to other members of the Grand
Alliance until the trial, and it is seen by some as a conflict of interest,
especially because MIT professor Jae Lim, inventor of the school's entry into
the competition, cast one of four votes on the Grand Alliance selection
committee.
In line with school policy, Lim will receive roughly $8 million as his share
of MIT's royalties.
