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Digimarc filed a patent-infringement lawsuit against Verance in September 2001 related to a patent for embedding digital watermarks into audio or video content. The dispute concluded with a settlement in August 2002.

Verance filed an action for declaratory judgment alleging invalidity and non-infringement of twenty-two Digimarc patents. The case was jointly dismissed in January 2012 as part of a broader settlement and new license agreement.