Representatives of Hollywood's major movie studios Thursday settled a lawsuit with a microchip company they accused of selling chips to makers of equipment that could be used to illegally copy DVDs.
The Motion Picture Assn. of America settled the suit with ESS Technology Inc., ESS said in a statement.
The company makes chips that decode the content scramble system, or CSS, which is the copy-protection system used for DVDs.
ESS Technology, based in Fremont, Calif., said it would now sell its chips only to companies with valid CSS licenses as part of their agreement.