April 10 (Bloomberg) -- Funai Electric Co. won its bid to block U.S. imports of high-definition televisions by Vizio Inc. after a federal trade agency said the TVs infringed Funai’s patent.

The U.S. International Trade Commission issued the order today after reviewing the case won by Funai before an administrative law judge. If Vizio wants to continue to import the TVs while the ban is reviewed by President Barack Obama, it must post a bond of $2.50 for each television, the agency said. The underlying patent case will be reviewed by an appeals court that specializes in U.S. patent law.

The patent covers a way for digital TV receivers to identify programs, broadcast channels and program descriptions to viewers. Funai claimed the invention is used by any television that can receive the digital signals that are about to become standard for major U.S. stations. It filed the complaint in October 2007.

Vizio, based in Irvine, California, says it’s the top- selling maker of flat-panel high-definition TVs in North America, according to information on the company’s Web site. Its TVs, made in Taiwan, are sold by retailers including Costco Wholesale Corp. and Wal-Mart Stores Inc. The complaint also named AmTran Technology Co. of Taiwan, which makes the Vizio TVs.

Also named were Proview International Holdings Ltd., which makes Proview TVs, and TPV, the world’s largest contract maker of computer monitors, which also makes Envision televisions. A second patent, which was ruled invalid, covers the way a TV controls how the image fits the screen.

Second Look

The U.S. Patent and Trademark Office is taking a second look at the infringed patent and has, in early reviews, rejected it, Vizio said.

Funai Chief Executive Officer Tomonori Hayashi said today in an e-mailed statement that “the ITC has vindicated Funai’s efforts to legitimately enforce its U.S. digital television patent against infringing companies like Vizio.”

The televisions that are subject to the ITC’s order are sold under the Vizio, Olevia, Proview, AOC and Envision names, Funai said.

Funai, based in Osaka, Japan, with U.S. headquarters in Rutherford, New Jersey, makes televisions under the Emerson and Sylvania brand names.

In February, Vizio filed an antitrust complaint with the U.S. Federal Communications Commission, accusing Funai of demanding “exorbitant” fees to license its patent.

The case is In the Matter of Certain Digital Televisions, 337-617, U.S. International Trade Commission. (Washington)

To contact the reporter on this story: Susan Decker in Washington at sdecker1@bloomberg.net.

Last Updated: April 10, 2009 15:25 EDT