Compal Electronics Inc (仁寶電腦), the world's second-biggest laptop computer maker on a contract basis, yesterday said it would pay unspecified royalties as part of an out-of-court settlement with LG Electronics Inc over a long-running patent infringement lawsuit.
"We settled the lawsuit on April 3. We will be able to use the patent in designing products for our customers in the future," Compal spokesman Gary Lu (
The settlement came after a ruling in favor of the South Korean company by the US Court of Appeals last July.
Lu declined to disclose the amount of the royalty payments. but he said the payment "will not erode the company's first quarter financial result."
Another unlisted Taiwanese computer maker First International Computer Co (
LG Electronics had filed patent lawsuits against FIC and Compal with a US court in 2000 and 2001, respectively, claiming the Taiwanese companies had sold computers in the US market that use data-transmitting technology, also known as peripheral component interconnection, without its permission.
"Taiwanese electronics companies like Compal have been facing similar patent disputes as their bigger competitors seek to slow their rapid expansion through legal means," said Sean Hsiao (蕭文良), a computer industry analyst with Fubon Securities Investment Services Co (富邦投顧).
The patent disputes between Acer Inc, the world's No. 4 computer brand, and industry leader Hewlett Packard Co was the latest case, Hsiao said.
Royalty payments, or penalty fines, were usually not the focus of such disputes, Hsiao said. As such, he did not expect Compal to sustain serious losses from the settlement with LG.
Compal shares were unchanged at NT$28 on the Taiwan Stock Exchange yesterday.
"Intellectual property is one of LG's essential assets, which we will always uncompromisingly protect," said Lee Jeong-hwan, executive vice president and head of LG's Intellectual Property Center, in a statement.
"This settlement will positively impact on our negotiations with other PC makers," Lee said.
LG Electronics' patent, which the Taiwanese companies infringed, applies to all computers manufactured worldwide including laptops and desktops.
LG already has royalty contracts with 10 computer makers and is pursuing contracts with 30 other manufacturers, the company said.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
GOGOROS TO GO: The scooter maker’s CEO said that the electric vehicles ‘are the perfect complement to a program designed to stimulate the Taiwanese economy’ Minister of Economic Affairs Wang Mei-hua (王美花) yesterday announced a draw to encourage people to claim their Triple Stimulus Vouchers digitally. The prizes include movie tickets and 25 electric scooters donated by Gogoro Inc (睿能創意), Wang said. The Ministry of Economic Affairs said that it would hold a scooter draw every day for the next 10 days, beginning yesterday, after which there would be a draw every week for 15 weeks. The first winner was a Taiwan Cooperative Bank (合庫銀行) credit card user, the ministry said. The benefits of claiming the vouchers digitally extend beyond the draws, with many businesses offering special deals for