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Thursday, June 26, 2003
Philips says not mulling legal action Vs Taiwan MediaTek

Philips Electronics said Wednesday it isn't planning to take legal action against Taiwan chip designer MediaTek, putting to rest speculation that a suit over patent infringement was looming.

Local newspaper reports and market watchers have said in recent days the Philips planned to file suit against MediaTek for alleged patent infringement. Philips said it isn't considering anything of the kind.

"(We are) not aware of any moves to take legal action against MediaTek, a company with which we have a good relationship," said Jeremy Cohen, head of corporate communications at Philips.

MediaTek, the world's largest maker of chips used in compact disc and digital video disc drives and players, recently settled a copyright dispute with ESS Technology of the U.S.

As part of their agreement, MediaTek agreed to pay a one-time license fee of US$45 million plus ongoing royalties with a lifetime cap of US$45 million.

ESS filed the suit against MediaTek in September, alleging the Taiwan company violated ESS Technology's DVD-related copyright for its Swan and Vibratto products. MediaTek denied the charges.

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