Asustek Computer Inc (華碩) and its IC design subsidiary ASMedia Technology Inc (祥碩) yesterday said they have agreed to pay VIA Technologies Inc (威盛電子) US$15 million to settle a four-year patent infringement dispute in Taiwan and the US.
Asustek and ASMedia will each shell out US$7.5 million as part of the settlement agreement, the two companies said in separate filings with the Taiwan Stock Exchange.
“The case will not have a significant impact on Asustek’s finance and operations,” Asustek spokesman Nick Wu (吳長榮) said by telephone.
Asustek is considering booking the payment as a one-off expense in last quarter’s financial statements, pending discussions with its accountants, Wu said.
The payment is estimated to reduce Asustek’s earnings per share (EPS) by NT$0.3, based on the company’s 742.76 million outstanding shares.
The settlement is forecast to have a bigger impact on ASMedia, cutting its EPS by NT$3.97, based on its 57.07 million outstanding shares.
ASMedia’s stock price plunged 5.81 percent to close at NT$373 in Taipei trading yesterday.
VIA — an affiliate of HTC Corp (宏達電) — had accused a former executive, Lin Che-wei (林哲偉), and four other former employees who joined ASMedia of disclosing the firm’s confidential technologies on USB 3.0 chips to ASMedia.
VIA in November 2012 accused ASMedia of patent infringement and in 2013 filed a civil lawsuit against Asustek, Asustek CEO Jerry Shen (沈振來) and Lin, and asked for NT$4.13 billion (US$136.5 million) in damages.
Asustek chairman Jonney Shih (施崇棠) in 2013 held a press conference at the Taiwan Stock Exchange, defending the companies and Shen.
VIA chairman Chen Wen-chi (陳文琦) said Shih should state the truth and admit his mistakes.
VIA said in a filing on Monday with the Taiwan Stock Exchange that the company, Asustek and ASMedia reached a settlement on Saturday last week after four years of lawsuits.
“We [VIA, Asustek and ASMedia] are satisfied with the result,” VIA said.
The details of the settlement is protected under a confidentiality agreement, the companies said.
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