SAN FRANCISCO Image processor supplier Genesis Microchip Inc. said Thursday (Dec. 21) it has agreed to pay Silicon Image Inc. $4.5 million to settle terms of a memorandum of understanding entered into by the companies in 2002. But a statement issued by Silicon Image puts a different spin on the agreement.
According to Genesis (San Jose, Calif.), the settlement is part of a definitive agreement between the two companies that resolves all major items of contention and finalizes the recurring royalty rates that are due from Genesis to Silicon Image on all Genesis controllers that implement the DVI and HDMI standards.
A statement issued by Silicon Image Thursday said the agreement concludes matters associated with a federal patent infringement suit that Silicon Image originally filed against Genesis in 2001. Genesis had paid Silicon Image $11 million through Sept. 30 relating to this matter, Silicon Image said, adding that it expects to record approximately $13 million to $15 million in operating income during the current quarter, including the $11 million.
The exact composition of increase between licensing revenue, recovery of patent assertion expenses and other items is not currently known because Silicon Image is awaiting royalty data from Genesis, http://www.siliconimage.com said.