Taiwan MediaTek: Has Modified Pdts Related To ESS Claim
Thursday March 13, 3:58 am ET
TAIPEI (Dow Jones)--Taiwan's MediaTek Inc. , the world's largest designer of chips for optical drives, said Thursday it is looking into allegations by a U.S. rival about technology infringement, and has taken steps to limit any impact on customers.
MediaTek said it recently made changes to two products that U.S. chipmaker ESS Technology Inc. (NasdaqNM:ESST - News) says infringes on its rights.
The two pieces of software, a user interface and firmware used with chipsets for digital video disc players, are at the heart of a motion ESS filed Wednesday in the U.S. ESS wants a preliminary injunction in the U.S. that stops the import of MediaTek products and DVD players containing those products.
Firmware is a kind of software made to run computer hardware, while a user interface allows a user to communicate with the computer's operating system.
In a statement filed with the Taiwan Stock Exchange, MediaTek said it modified the products to limit any potential negative impact to its customers from the case.
ESS alleged MediaTek deliberately copied its DVD firmware and graphical user interface "so that they could bring their DVD product to market sooner and obtain customer acceptance more quickly," said Patrick Ang, chief operating officer of ESS, in a statement.
The preliminary injunction is part of a lawsuit filed last September by ESS that accused MediaTek of copyright infringement on the firmware and user interface.
In the statement, MediaTek said neither the lawsuit nor preliminary injunction are aimed at MediaTek's DVD player chipset products or the "core technology" of its firmware.
MediaTek also said U.S. copyright laws on user interface copyright protection "have definite limits." The company said it has retained lawyers in the U.S. to handle the case, and that since the lawsuit has already been filed, it wouldn't be proper to respond.
The ESS allegation caused MediaTek shares to fall 2.2% to NT$267 on Thursday, in contrast to the 1.2% rise in the main Taipei bourse.
-By Dan Nystedt, Dow Jones Newswires; (8862) 2502-2557; dan.nystedt@dowjones.com
-Edited by Timothy Gan |
