Fabless chip shop alleged to be hiring 'litigation hit men' to kneecap rival
Taiwanese chip firm MediaTek is under scrutiny with the US Department of Justice taking an interest in an antitrust dispute with semiconductor compatriot Realtek.Those patent infringement cases centered on chips used in television sets, for which MediaTek is understood to have in excess of a 70 percent market share.
Realtek alleged in its original complaint that MediaTek was paying a patent assertion company a"secret bounty" to file patent litigation cases in the US courts, with the intent of harassing Realtek and causing it to divert resources away from product development. Realtek alleged that it discovered this arrangement during the discovery process relating to one of the patent infringement cases, when it uncovered a license agreement between MediaTek, IPValue, and Future Link that included the litigation bounty provision.
Even if the patent cases are not shams, however, the bounty agreement is"not petitioning or incidental to petitioning," and the DoJ warns that"exemptions from the antitrust laws should be construed narrowly," calling for hesitation before applying these on a motion to dismiss.
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