FLANDERS, N.J. -- Chip-equipment supplier Rudolph Technologies Inc. today (Sept. 30, 2003) announced that its wafer-inspection subsidiary, ISOA Inc., has filed a counterclaim in response to a suit filed by August Technology Corp. on Sept. 23.
The dispute arises from a development agreement in 1997 between ISOA, which was acquired by Rudolph in 2002, and STI Inc., a company acquired by August in April of 2003.
Under the agreement, ISOA agreed to provide to STI certain engineering resources in the development of software for STI's semiconductor metrology systems. In return, STI agreed to pay to ISOA a minimum royalty of $1 million of which approximately one-third was paid.
Rudolph claims it has and continues to maintain that ISOA fulfilled its obligations under the agreement. But August's view is that ISOA did not perform substantially in order to justify any additional payments, according to Rudolph of Flanders.