Thu, Nov 11, 2004 - Page 10 News List

ProMOS, Infineon ends licensing dispute


Taiwanese chipmaker ProMOS Technologies Inc (茂德科技) said yesterday that it has ended its legal battle with Infineon Technologies AG by agreeing to pay the German tech giant US$156 million (NT$5.1 billion) to extend a licensing agreement for chip technology.

Infineon -- one of Europe's biggest chipmakers -- helped found ProMOS Technologies as a joint venture with Taiwanese memory-chip maker Mosel Vitelic Inc (茂矽).

But the 6-year-old partnership broke up last year amid legal disputes over a shareholder agreement.

ProMOS Technologies spokesman Albert Lin (林育中) said the new agreement with Infineon has resolved the differences between the companies.

"We had disagreements over our original license agreement. Now, we've amended the agreement and will pay a royalty," he said.

ProMOS said in a statement it would pay the US$156 million in four installments, with the initial amount, US$70 million, to be paid by Dec. 15.

Infineon said in a statement it has accepted the royalty payment, and has agreed to end the dispute.

"All claims, including litigation, arbitration or other complaints, raised by both sides will be withdrawn," it said.

The Infineon-Mosel corporate marriage began to sour in 2002 when Mosel put up the majority of its ProMOS holdings as collateral on loans.

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