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Tuesday, March 22, 2005
Lite-On IT - ITRI agree on royalties

Lite-On IT and the Industrial Technology Research Institute (ITRI) reached a settlement on the dispute on ITRI?s royalty charge of NT$10 million for its patent used by Lite-On IT in loaders of its slim-type optical disc drives, according to the two parties.

The patent was developed by the Opto-Electronics & Systems Laboratories (OES) of ITRI with financial assistance from the government and the NT$10 million is royalty fee for licensed use, ITRI argued. However, Lite-On IT claimed the charge was too high, stating that its domestic sales of slim-type ODDs were far below NT$10 million a year.

Two weeks ago, after the two parties had reached an impasse, ITRI began legal proceedings against Lite-On IT in the local courts to recover the royalties. However, the two parties continued negotiating behind the scenes and eventually reached a mutually acceptable arrangement. However, the two parties declined to release the details of the settlement but stressed that Lite-On IT will continue cooperation with OES in developing FVD (forward versatile disc), Taiwan?s own DVD standard.

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