Realtek sues MediaTek over conspiracy to disrupt its business

The lawsuit accused MediaTek of conspiring with IPValue Management Inc in an effort to drive Realtek out of the market.

Realtek said that MediaTek signed a patent licensing pact with IPValue subsidiary Future Link Systems in 2019 that included the secret “bounty” pact.

According to the lawsuit, the “bounty” pact was revealed last year in patent litigation involving Future Link in West Texas federal court and at the US International Trade Commission.

Realtek said MediaTek has used the patent lawsuits, which seek to take its allegedly infringing chips off the market, to suggest to customers that Realtek may be an unreliable supplier for the television chip industry.

Realtek also said Future Link has kept details of the agreement “buried under confidentiality obligations and protective orders”.

Realtek has asked the court to order the companies to end the alleged conspiracy and requested an unspecified amount of money damages.

The International Trade Commission had termed the agreement “alarming” and said it “may well be untoward and actionable”.

The West Texas court had said it was “improper” and “should be discouraged as a matter of public policy”.

MediaTek owns nearly 60% of the global market share for television chips, the lawsuit said.

Future Link settled several other patent cases against tech companies including MediaTek competitor Amlogic soon after the ITC criticized it, Realtek said.

(With inputs from Reuters)

Updated: 06 Jun 2023, 10:59 PM IST

The lawsuit accused MediaTek of conspiring with IPValue Management Inc in an effort to drive Realtek out of the market.

Realtek said that MediaTek signed a patent licensing pact with IPValue subsidiary Future Link Systems in 2019 that included the secret “bounty” pact.

According to the lawsuit, the “bounty” pact was revealed last year in patent litigation involving Future Link in West Texas federal court and at the US International Trade Commission.

Realtek said MediaTek has used the patent lawsuits, which seek to take its allegedly infringing chips off the market, to suggest to customers that Realtek may be an unreliable supplier for the television chip industry.

Realtek also said Future Link has kept details of the agreement “buried under confidentiality obligations and protective orders”.

Realtek has asked the court to order the companies to end the alleged conspiracy and requested an unspecified amount of money damages.

The International Trade Commission had termed the agreement “alarming” and said it “may well be untoward and actionable”.

The West Texas court had said it was “improper” and “should be discouraged as a matter of public policy”.

MediaTek owns nearly 60% of the global market share for television chips, the lawsuit said.

Future Link settled several other patent cases against tech companies including MediaTek competitor Amlogic soon after the ITC criticized it, Realtek said.

(With inputs from Reuters)

Updated: 06 Jun 2023, 10:59 PM IST