MediaTek Inc (聯發科), the nation’s largest handset chip designer, has signed a settlement agreement with BT Group PLC’s British Telecommunications unit over a patent-infringement lawsuit, the Hsinchu-based company said in a stock exchange filing on Thursday.
British Telecom (BT) will file for a dismissal of the suit it brought in Massachusetts in November and will not pursue legal proceedings related to the same patents anywhere else as part of the settlement agreement, MediaTek said.
BT had alleged MediaTek’s wireless unit infringed on its patent for data compression technology, according to the complaint filed on Nov. 2.
MediaTek declined to elaborate on the settlement or to disclose any possible compensation it will have to pay BT over the patent dispute.
The company said that “the settlement does not pose any impact on the company’s financial condition or its operations.”
MediaTek had insisted on its innocence when BT first filed the lawsuit, saying the company had never used the patents involved in the dispute.
In recent years, MediaTek has obtained IC patents for mobile phone use through a spate of acquisitions, as the company has been diversifying its business to the mobile communications IC sector.