The US International Trade Commission (ITC) has voted to launch an investigation into a patent infringement allegation against Taiwanese communication network IC designer Realtek Semiconductor Corp (瑞昱半導體) and other firms.
The investigation is to look into specific graphics systems, components and digital televisions containing the parts allegedly designed with patents belonging to the complainants, the ITC said in a statement on Wednesday.
In addition to Realtek, the ITC also voted to investigate a patent infringement case against China-based TCL Technology Ltd (TCL科技) and its subsidiaries in Hong Kong and other overseas markets, the commission said.
Photo: CNA
The ITC said the decision to launch the probes against Realtek and TCL came after Advanced Micro Devices Inc (AMD) of the US and Canada’s ATI Technologies ULC filed a complaint on May 5 saying that the firms had infringed on their patents.
The statement alleges that Realtek and TCL contravened section 337 of the US Tariff Act of 1930 for the sale of certain graphics systems, components and digital televisions containing parts that infringe on the complainants’ patents.
The complainants have requested the ITC to issue a limited exclusion order along with cease-and-desist orders, the commission said.
Realtek said in response that it cannot comment on how it foresees the investigation’s results at this time.
The ITC said that it had not made any decision on the merits of the case.
Its chief administrative law judge is to assign the case to one of the commission’s six other judges, who would hold an evidentiary hearing and issue a preliminary ruling, the statement said, adding that the ruling is subject to review by the commission, which would make a final decision.
A target completion date for the probe is to be set by the ITC within 45 days of its initiation, the commission said.
Analysts in Taiwan said chips used in TV production account for about 10 percent of Realtek’s sales, adding that the Taiwanese IC designer is expected to see some drop in consumer electronics revenue this year given weakening demand.
Realtek has expanded its efforts to upgrade its network communication IC development and enter the advanced Wi-Fi 6/6E business to offset the effects from weakening consumer electronics demand.
Realtek in the first quarter of this year posted a quarterly high net income of NT$5.19 billion (US$176.6 million), up 12.6 percent from a quarter earlier, and up 69.8 percent from a year earlier.
First quarter earnings per share stood at NT$10.15, compared with NT$9.02 a quarter earlier and NT$5.98 a year earlier.
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