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Tuesday, February 14, 2006
Zoran Settles with MediaTek, UMC


Zoran and its wholly-owned subsidiary, Oak Technology, have entered into an agreement to settle litigation between Oak and both MediaTek and United Microelectronics Corp. (UMC), Zoran said last week.

Under the agreement, the litigation will be dismissed and MediaTek or one of its affiliated companies will pay Zoran $15 million, Zoran said. The company expects to realize approximately $7.7 million in connection with the settlement after payment to a holder of rights under certain Oak patents and legal fees. In connection with the settlement, Zoran and MediaTek will also grant each other cross-licenses on certain patents, Zoran said.

This litigation, which involved various contractual claims, was instituted in 1997, prior to Zoran's acquisition of Oak.

Last month, Zoran and Mediatek settled a patent dispute involving Oak. Under the terms of that settlement, the companies said MediaTek would make a cash payment of $55 million to Zoran and royalty payments of up to $30 million over the next 30 months.


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