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Conexant, TI settle ADSL patents dispute

Posted: 09 May 2006 ?? ?Print Version ?Bookmark and Share

Keywords:John Walko? Conexant Systems? Texas Instruments? TI? ADSL?

Conexant Systems Inc. is paying Texas Instruments Inc. (TI) a lump sum of $70 million to settle a long-running dispute over patent rights and licensing deals for ADSL technology.

Under terms of the agreement, TI will grant Conexant a license to essential patents relating to DSL technology. In addition, the companies have extended the deal to include a fully paid license for VDSL products. Other terms of the settlement agreement were not disclosed.

Both companies have also withdrawn the litigation against each other in the federal courts and a second trial that was scheduled to begin in October has been called off.

The dispute goes back to the 2004 acquisition by Conexant of GlobespanVirata. In June 2003, GlobespanVirata filed a complaint against TI for violation of U.S. antitrust laws by creating an illegal patent pool, manipulating the patent process and abusing the process for setting standards related to ADSL technology. Two months later, TI filed counterclaims alleging that GlobespanVirata infringed its ADSL patents.

"Today's agreement puts behind us a very complex dispute that most likely would have required considerable attention and expense for several more years. From the perspective of our customers, not only have we now reaffirmed our ADSL license with Texas Instruments, we have extended this license to our current and future VDSL products," Dwight Decker, Conexant chairman and CEO, said in a statement.

The trial jury concluded in February that GlobespanVirata infringed three patents related to ADSL technology and awarded TI $112 million in damages.

- John Walko
EE Times

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