Sat, Apr 14, 2007 - Page 12 News List

Prosecutors probe Logah Technology, question managers

By Jason Tan  /  STAFF REPORTER

Logah Technology Corp (力銘科技), a local manufacturer of inverters for flat-panel TVs, notebooks and monitors, was raided again yesterday by prosecutors investigating a suspected patent infringement.

Around 20 prosecutors went to Logah's Hsinchu headquarters, mainly questioning four employees suspected of patent-infringement and stealing classified business information from Hon Hai Precision Industry Co (鴻海精密).

"In addition to raiding the headquarters, we are also questioning four high-ranking managers at Logah. Unfortunately we cannot comment at this point," said Chen Yu-hua (陳玉華), a Hsinchu prosecutor who was in charge of yesterday's raid and questioning.

LITE-ON

Lite-On Technology Corp (光寶科技), the parent company of Logah, yesterday downplayed the seriousness of the raid and said it was not related to insider trading. Several companies in the high-tech sector have been caught up in insider trading allegations in recent weeks.

An official from Lite-On's public relations division, who declined to be named, said Logah had cooperated with the investigation, adding that its business would not be affected, as three of the four employees questioned had resigned.

Hon Hai, the nation's largest electronics parts maker, sued Logah in February last year for allegedly infringing on patents related to the company's liquid-crystal-display inverter.

SEIZURE

Hon Hai then requested that Hsinchu District Court enforce a provisional seizure of up to NT$180 million (US$5.4 million) worth of Logah's assets.

It also asked Chinese customs officials last May to inspect and detain products shipped by Logah to China.

Banciao District Court ruled in favor of Logah in the provisional seizure case, but the infringement lawsuit is still in progress.

Additional reporting by Jimmy Chuang

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