Sat, Aug 04, 2018 - Page 12 News List

Chilisin dismisses Cyntec’s patent lawsuit in US

By Lisa Wang  /  Staff reporter

Passive component supplier Chilisin Electronics Corp (奇力新) yesterday dismissed the latest patent infringement lawsuit launched by a smaller rival, saying the allegations were groundless.

The company’s remarks came in the wake of media reports yesterday that Cyntec Co (乾坤) in February filed a patent infringement lawsuit with the California Northern District Court, accusing Chilisin of illegally using four of its patents linked to the manufacture of power chokes.

Cyntec, a passive component supplier of power supply maker Delta Electronics Inc (台達電), said it would not rule out taking further legal action to seek an injunction to ban the imports of products made by Chilisin, the reports said.

A power choke is a passive component used in a wide range of electronic products, including smartphones and notebook computers.

The US is the biggest market for this component, which is why Cyntec decided to take Chilisin to court in the US, the reports said, adding that Cyntec had spent one-and-a-half years collecting evidence and information before lodging its lawsuit with the district court.

Chilisin said it had hired experts to look into the case.

“The company found that there were no concerns of patent infringement,” Chilisin said in a filing with the Taiwan Stock Exchange yesterday.

Chilisin, a subsidiary of the nation’s biggest passive component supplier, Yageo Corp (國巨), said it has hired lawyers to safeguard the interests of the company and its customers, according to the filing.

Chilisin is the nation’s largest power choke supplier after a series of acquisition deals, including Ralec Electronic Corp (旺詮) and Ferroxcube International Holding BV (飛磁), over the past few years.

Chilisin reported first-half revenue of NT$7.38 billion (US$240.3 million), up 26.5 percent from the same period last year.

Its shares rose 3.36 percent to NT$123 in Taipei trading yesterday, shrugging off worries about the intellectual property lawsuit.

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