Newport Beach-based Conexant Systems Inc. said Friday it will pay Texas Instruments Inc. $70 million to settle a long-running patent dispute.
The pact resolves any infringement claims against Conexant related to TI’s broadband asymmetric digital subscriber line patents. Conexant received a license from TI to use the technology.
The settlement ends a legal battle chipmaker Conexant inherited from its acquisition of Red Bank, N.J.-based GlobespanVirata Inc. in 2004.
“Today’s agreement puts behind us a very complex dispute that most likely would have required considerable attention and expense for several more years,” said Dwight Decker, chief executive of Conexant.
In 2003, GlobespanVirata filed a complaint against TI, claiming the chipmaker violated federal antitrust law by creating an illegal patent pool, manipulating the patent process and abusing the process for setting standards related to the broadband Internet technology.
TI filed counterclaims in 2003, claiming GlobespanVirata infringed some of its digital subscriber line patents.
In 2004, the case was split into two phases, patent and antitrust, with the patent phase going to trial first.
In early February, the jury said GlobespanVirata infringed three patents and awarded $112 million in damages to TI. Without the settlement, a trial was set to start on the antitrust phase in October.
Conexant’s stock was up 7% to $3.80 in midday trading Friday.
