US-based Genesis Microchip has suggested that system makers using patent-infringing LCD-controller IC-related products from Taiwan makers can protect themselves by licensing the technology directly from Genesis, according to sources.
Genesis recently won a patent infringement case against Taiwan-based IC-design houses MStar Semiconductor, Media Reality Technologies (MRT) and Trumpion Microelectronics.
System makers can pay a US$10,000 fee to Genesis plus a royalty charge of US$0.20 per patent-infringing IC to license one of Genesis’s LCD controller IC-related patents (No.5,739,867) for 13 years, the sources said. The sources added that system makers are already in negotiations with the IC design houses to help shoulder the fees.
Sampo Technology, Samsung Electronics, Tovis, Hyundai ImageQuest and other unspecified system companies have already signed licensing agreements with Genesis, according to the sources. An unspecified system maker said they chose to license the technology from Genesis so that their OEM customers will not have to worry about possible patent disputes.
Sampo spokesperson C.L. Chuang said that the agreement it has signed with Genesis will guarantee that its products can be imported to the US and be sold in the country. The related licensing fees will be paid by its three chip suppliers, MStar, MRT and Trumpion. Production costs for Sampo LCD monitors and LCD TVs will not be affected by the agreement, Chuang added.
In response to the developments, Wayne Liang, president and chairman of MStar, said that although the company has introduced new products that do not include the contested intellectual property (IP), MStar still respects its customers’ choice. MRT and Trumpion were unavailable for comment.
According to an August 23 article, the US-based International Trade Commission (ITC) announced that MStar, MRT and Trumpion all infringed patent No.5,739,867 from Genesis, and the ITC issued an exclusion order, to take effect in October, banning any imports to the US of products using patent-infringing IC controllers from the three companies.
Background:
Sampo licenses Genesis Microchip’s patent (Aug 25)
Samsung and Genesis Microchip enter licensing agreement (Aug 26)
Tovis licenses Genesis Microchip’s patent (Aug 26)
Hyundai ImageQuest licenses Genesis Microchip’s patent (Aug 27)
Article translated by Carrie Yu and edited by Michael McManus
