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EE Times-India > Optoelectronics/Displays

Zoran settles patent litigation with MediaTek

Posted: 31 Jan 2006     Print Version  Bookmark and Share

Keywords:patent litigation  settlement  Zoran  Oak Technology  MediaTek 

Zoran Corp. and its wholly-owned subsidiary, Oak Technology Inc., have entered into an agreement with MediaTek Inc. to settle a pending patent litigation which the parties initiated against each other in 2004. Under the agreement, each party will dismiss its respective claims and counterclaims under all of the pending lawsuits. The parties will also dismiss all proceedings pending against each other before the U.S. International Trade Commission (ITC), including all appeals and enforcement proceedings pending before the ITC, U.S. Customs and Border Protection and the U.S. Court of Appeal for the Federal Circuit.

In connection with the settlement, Zoran, Oak and MediaTek have entered into agreements granting each other non-exclusive licences under the patents that were the subject of the litigation, and additional patents used in the design and manufacture of optical storage devices for PC products.

In consideration for licences granted by Zoran, MediaTek will make a cash payment of Rs.243.54 crores ($55 million) to Zoran. In addition, MediaTek will be required to make royalty payments of up to Rs.132.84 crores ($30 million) over the next 30 months based on future sales of covered MediaTek products. Net of amounts payable by Zoran to a holder of rights under the Oak patents involved in the litigation, and amounts payable as legal fees, Zoran will realise approximately Rs.121.77 crores ($27.5 million) of the cash payment and up to approximately Rs.66.42 crores ($15 million) of the future royalty payments.

In addition to the foregoing litigation, Oak is involved in separate litigation against MediaTek and United Microelectronics Corp. regarding certain contractual claims. This litigation was instituted in 1997, prior to Zoran's acquisition of Oak. The parties concerned have also been negotiating a resolution of these claims.

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