The long-standing legal feud between Emulex Corp. and Irvine-based chipmaker Broadcom Corp. appears to be over.
The companies recently entered a one-year “dismissal and standstill agreement” related to patent infringement claims Broadcom first levied five years ago.
Under the latest agreement:
• The Costa Mesa-based networking equipment maker will pay Broadcom a $5 million dismissal and standstill fee.
• The companies dismissed unresolved claims by Broadcom that were scheduled for retrial in September.
• Broadcom agreed to a one-year standstill in making any claims against Emulex, its subsidiaries or customers, or any third-party suppliers, according to documents filed with the Securities and Exchange Commission.
The agreement pertains to Ethernet technology, a key segment for both companies but Emulex’ primary growth driver.
“We’ve been fighting with Broadcom for a long time,” Emulex Chief Executive Jeff Benck said. “I’m just thankful we’re able to get a good result.”
Benck has aimed to clean up the company’s lingering legal disputes and cut litigation expenses since he replaced Jim McCluney last July.
“We’re turning the page and moving forward,” he said.
The agreement is the latest in a string of legal developments over the years between the companies that have kept some investors at bay and caused customers to delay upgrades pending a resolution.
Emulex, in July 2012, agreed to pay Broadcom $58 million in a partial settlement and licensing agreement, and Broadcom dismissed certain patent infringement claims against Emulex and was protected against certain “patent assertions.”
The resolution cleared up one of three patent lawsuits between the companies.
The U.S. District Court for the Central District of California granted a permanent injunction in March 2012 against Emulex for infringing on two Broadcom patents involving products from lines of 10 gigabit Ethernet controllers, chips and switches.
The ruling also required Emulex to pay Broadcom a 9% royalty on products using those patents through June 2013 and prohibited it from importing, manufacturing, using and selling certain products using the patents in the U.S.
The original lawsuit was filed in September 2009, when Broadcom charged Emulex with infringing on 10 of its patents for chips related to high-speed networking and data storage technologies. That came a few months after Emulex rebuffed a final $912 million takeover offer from Broadcom.
Broadcom is the biggest chipmaker based in Orange County, with about $8.3 billion in revenue last year.
Emulex is the sixth largest computer products maker here and posted revenue of about $478.5 million in the 12 months through June, the end of its fiscal year.
Tech Exec Honored
Doris Mattingly, director of engineering at Irvine-based networking gear maker Lantronix Inc., was named one of the most influential women in machine-to-machine technology by trade publication Connected World Magazine.
The 25-year industry veteran with prior engineering roles at Ericsson, Hughes Aircraft, and McDonnell Douglas, was among 42 women honored.
M2M technology, Lantronix’ specialty, allows wired and wireless systems to communicate with other devices.
M2M global sales are expected to grow 23% annually over the next seven years to nearly $950 billion, according to Washington, D.C.-based Carbon War Room.
Ultra HD TV Sales
Taiwan-based market tracker TrendForce Corp. forecasts the sales of ultra high-definition TVs to hit about 5.6% of total HDTV purchases this year.
Irvine-based Vizio Inc. entered the fray earlier this year with a model showcased at the International Consumer Electronics Show in Las Vegas. Orange-based Westinghouse Digital LLC joined the likes of Samsung, Sony and LG in releasing its first ultra high-definition models last year.
