Irvine-based Microsemi Corp., a maker of chips for use in aerospace, defense and consumer electronics, said Tuesday it signed a patent licensing deal with networking kingpin Cisco Systems Inc.
The company said it struck a cross-licensing deal for a technology that’s called power-over-Ethernet, which sends power over computer networking cables, cutting the need for separate energy supplies for routers, switches and other devices.
The chips are seen as a way to cut costs of installing a network for computers and other devices such as security cameras.
Financial terms of the deal weren’t disclosed.
“The technology exchange is a validation of our strong technology and intellectual property,” said Rob Adams, Microsemi’s vice president of corporate development. “This was a mutually beneficial agreement.”
The technology has been put into new applications in recent years, including access control devices, laptop computers, personal digital assistants, fire sensors and alarms, audio and video remote monitoring and residential gateways, the company said.
Microsemi landed design wins with Cisco back in 2007, after it bought publicly traded Israeli chipmaker PowerDsine Ltd. for $245 million.
Cisco has roughly 70% of the market for power-over-Ethernet products. Microsemi, with PowerDsine under its belt, has the balance.
“We believe that the agreement reached will facilitate proliferation of power-over-Ethernet technology by eliminating uncertainties that exist with respect to intellectual property positioning,” Microsemi Chief Executive Jim Peterson said.
In a separate announcement on Tuesday, a federal trade watchdog issued a final decision that cleared Microsemi in a patent dispute with 02Micro International Ltd.
The International Trade Commission took up the case back in February of last year to investigate a case that accused Microsemi and others of infringing on 02Micro’s patents for electronics used in notebook computer screens.
02 Micro also named South Korea’s LG Group, San Jose-based Monolithic Power Systems Inc., Taiwan’s BenQ Corp., which has operations in Irvine, in its suit.
O2Micro was looking to get the ITC to ban imports of the electronics.
The ITC ruled that Microsemi’s products, which go into liquid crystal display computer screens, didn’t infringe on the patents. It also formally closed the investigation.
02Micro has its headquarters in the Cayman Islands with operations in Santa Clara.
It’s not the first time 02Micro and Microsemi have sparred over intellectual property.
In 2007, the two companies settled litigation over several patents, in which they agreed to dismiss claims and not sue each other or their customers for four years.
The settlement was part of a case that stretches back to 2005 involving Japan’s Rohm Ltd. and Sony Corp.
O2Micro said the two companies violated three patents related to Sony’s liquid-crystal display TVs that contain Rohm chips, according to a report by EEtimes.com, an online trade journal.
Microsemi had a recent market value of $1.3 billion.
