MediaTek settles patent lawsuit with Zoran Corp

Quakester2000

January 27, 2006

MediaTek and Zoran have finally got round to settling their patent lawsuit. The cost of the settlement is expensive and comes in at a one off fee of $55 million with an additional $30 million payable in monthly royalty instalments over the next 2.5 years.

This agreement lets Mediatek have access to all Zorans optical patents that cover things such as firmware and chipsets used for PC's. Mediatek has also offered Zoran the chance to licence its optical storage patents. Following these agreements both companies have agreed to cease and desist all forthcoming suits filed against each other around the world.

MediaTek and Zoran today announced a patent-license agreement. Under the agreement, MediaTek will pay Zoran a license fee of US$55 million as well as an additional US$30 million payable in monthly royalty payments over the next thirty months, according to MediaTek's press release on January 26.

MediaTek will be allowed access to all optical storage-related patents from Zoran, such as chipsets and firmware used in personal computers, according to the announcement. Meanwhile, MediaTek has offered Zoran a license for its PC optical-storage patents, the PR says.

In addition, MediaTek and Zoran will immediately dismiss or withdraw any and all pending litigations filed against each other in all jurisdictions worldwide, according to the MediaTek press release.