Novatek Microelectronics Corp (聯詠), which designs driver ICs for flat-panel displays, on Friday last week said that the Intellectual Property Court has denied two preliminary injunction applications filed by FocalTech Electronics Ltd.
Novatek, which also designs system-on-chip solutions for multimedia applications, said it has invested a great deal in intellectual property rights over the years and has always respected the patent rights of other firms.
FocalTech Electronics is a Cayman Islands-registered subsidiary of touch-panel controller chip designer FocalTech Systems Co Ltd (敦泰). FocalTech Systems has yet to respond to the ruling.
FocalTech Electronics filed an application with the court on Aug. 29 for a preliminary injunction against Novatek’s NT36672 chip and another on Sept. 20 against Novatek’s NT36525 chip — chips that are mostly used in smartphones and integrate a driver and controller, known as touch controller with display driver integration (TDDI).
FocalTech Electronics on Nov. 16 amended the claim applications and filed a motion that prior to obtaining a final judgement, it would post bonds to prohibit Novatek from performing any activities, such as producing, outsourcing or selling the chips, that might infringe the patent (Patent No. I529580B).
The firm also requested minimum compensation of NT$794.36 million (US$25.8 million) from Novatek for revenue lost during the first three quarters of this year.
FocalTech on Friday reported that revenue last month fell 29.38 percent year-on-year to NT$696.33 million, with cumulative revenue in the first 11 months dropping 5.71 percent annually to NT$9.41 billion.
Novatek saw revenue rise 22.78 percent to NT$5 billion last month, with January-to-November revenue increasing 14.43 percent to NT$49.73 billion.
Novatek’s product lines could plateau or decline in the fourth quarter as the slow season arrives, Capital Investment Management Corp (群益投顧) said in a note.
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