Explorer

MediaTek Faces Lawsuit From Chip Rival Realtek Over Patent 'Bounty' Scheme

Realtek stated that the lawsuit aims to protect fair competition in the industry and prevent further harm to the public. 

Realtek Semiconductor Corp has filed a lawsuit against MediaTek Inc, a rival Taiwanese chipmaker, in a Northern California federal court. As reported by Reuters, Realtek alleges that MediaTek engaged in a scheme with IPValue Management Inc to disrupt Realtek's business by paying a "secret litigation bounty" to file baseless lawsuits in the United States. The lawsuit claims that MediaTek conspired with IPValue to drive Realtek out of the market and monopolise the industry for chips used in smart televisions and set-top boxes. According to Realtek, MediaTek currently holds nearly 60 per cent of the global market share for television chips.

Realtek stated that the lawsuit aims to protect fair competition in the industry and prevent further harm to the public. 

Realtek alleges that MediaTek entered into a patent licensing agreement with IPValue's subsidiary, Future Link Systems LLC, in 2019, which included the undisclosed "bounty" agreement. The existence of this agreement came to light during patent litigation involving Future Link in a West Texas federal court and the US International Trade Commission (ITC). Realtek claims that the details of the agreement were kept hidden under confidentiality obligations and protective orders.

The ITC expressed concerns about the agreement, stating that it may be "untoward and actionable," while the West Texas court deemed it "improper" and discouraged such practices as a matter of public policy. Realtek further noted that Future Link settled multiple patent cases against tech companies, including MediaTek's competitor Amlogic, after facing criticism from the ITC.

Realtek argues that MediaTek has used these patent lawsuits, which seek to remove Realtek's allegedly infringing chips from the market, to suggest to customers that Realtek may be an unreliable supplier in the television chip industry.

In its lawsuit, Realtek is seeking an end to the alleged conspiracy and unspecified monetary damages from both MediaTek and IPValue.

Subscribe And Follow ABP Live On Telegram: https://t.me/officialabplive

Read more
Sponsored Links by Taboola

Top Headlines

'Sincerely Apologise To Messi, His Fans': Mamata Banerjee After Chaos At Kolkata Stadium Event
'Deeply Shocked': Mamata Banerjee Apologises To Messi, His Fans After Kolkata Event Chaos
Delhi Imposes GRAP 3 Again As Air Quality Plunges To 'Severe': Check Station-Wise AQI
Delhi Imposes GRAP 3 Again As Air Quality Plunges To 'Severe'
Multiple Vehicles Collide On Greater Noida Expressway Amid Thick Fog, Several Injured
Multiple Vehicles Collide On Greater Noida Expressway Amid Thick Fog, Several Injured
US Lawmakers Introduce Resolution To End Trump's 'Illegal' Tariffs On India
US Lawmakers Introduce Resolution To End Trump's 'Illegal' Tariffs On India

Videos

UP BJP President Election: Pankaj Chaudhary Faces Challenges in Kurmi Vote Consolidation
UP BJP President Election: Pankaj Chaudhary Poised to Become New State Chief
UP BJP President Election: Pankaj Chaudhary Leads, Name Announcement Tomorrow
Breaking: Delhi Air Turns Hazardous as AQI Crosses 400, Thick Smog Blankets NCR
Bihar News: Youth Beaten After Being Asked Religion Dies During Treatment in Nawada

Photo Gallery

25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Embed widget