Friday, May 5, 2006
Conexant Systems Inc. is paying Texas Instruments Inc. a lump sum of $70 million to settle a long-running dispute over patent rights and licensing deals for ADSL technology. The dispute goes back to the 2004 acquisition by Conexant of GlobespanVirata.
Under terms of the agreement, TI will grant Conexant a license to essential patents relating to DSL technology. In addition the companies have extended the deal to include a fully paid license for VDSL products.
Other terms of the settlement agreement were not disclosed.
The companies have withdrawn the litigation against each other in the federal courts and a second trial that was scheduled to begin in October has been called off.
"We inherited this ongoing litigation when we merged with GlobespanVirata, and we are pleased that we have now resolved the matter," Dwight Decker, Conexant chairman and CEO, said in a statement.
"Today's agreement puts behind us a very complex dispute that most likely would have required considerable attention and expense for several more years. From the perspective of our customers, not only have we now reaffirmed our ADSL license with Texas Instruments, we have extended this license to our current and future VDSL products.”
In June 2003, GlobespanVirata filed a complaint against Texas Instruments alleging TI violated U.S. antitrust laws by creating an illegal patent pool, manipulating the patent process and abusing the process for setting standards related to ADSL technology. Two months later, TI filed counterclaims alleging that GlobespanVirata infringed its ADSL patents.
In mid-2004, the case was split into two phases—patent and antitrust—with the patent phase going to trial first.
The trial jury concluded in February that GlobespanVirata infringed three patents related to ADSL technology and awarded TI $112 million in damages.
By: DocMemory Copyright © 2023 CST, Inc. All Rights Reserved
|