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UMC claims it won verdict over SiS in ITC complaint
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Silicon Strategies


HSINCHU, Taiwan--Responding to a decision rendered by the U.S. International Trade Commission (ITC) in Washington, Taiwan's United Microelectronics Corp. (UMC) here claimed victory in the complaint against Silicon Integrated Systems (SiS) Corp.

On Tuesday, SiS released its own version of the verdict, hinting it was a split decision between the company and UMC in the ITC case. The ITC has apparently ruled that UMC's patent case was invalid, but it also blocked a key product line made by SiS from entering the U.S. market, according to SiS, a chip set maker in Taiwan (see Oct. 8 story ).

Last year, the ITC voted to investigate whether SiS violated two patents owned by silicon foundry giant UMC. UMC also claims SiS recruited some of UMC's engineers and infringed its intellectual properties in order to run SiS's wafer fab. The 200-mm wafer facility, located on the island, is the only one that SiS now operates (see Feb. 28, 2001 story ).

In a release issued today, UMC claims it won the case. In a Notice of Final Determination and Issuance of Limited Exclusion Order issued in Washington on Oct. 7, the ITC "ruled that SiS is manufacturing products using a patented UMC process in violation of United States law," according to UMC of Hsinchu.

"The Limited Exclusion Order directs the U.S. Customs Service to bar the entry of all SiS products made with the infringing process into the United States," according to UMC. "Infringing SiS chipsets and graphics chips, and all motherboards containing infringing SiS products, are to be barred from importation into the United States immediately following the law-mandated 60-day period for Presidential review of the decision," the company said.

"During this review period, infringing SiS products may be imported into the United States only if a bond is posted with the U.S. Customs Service in the amount of 100% of product value for each chipset and graphics chip, and 39% of product value for each motherboard containing those products," UMC said. "If the ITC's decision stands after the 60 days have elapsed, infringing SiS products will be barred from importation or sale in the United States until the year 2017."

"We believe in the fundamental importance of protecting intellectual property rights, whether it be our customers' or our own," said Robert Tsao, chairman of UMC, in a statement. "The United States FTC decision in favor of UMC underscores the value of intellectual property rights as a whole and sends a clear message that infringement on another company's proprietary technology will not be tolerated."

In a separate case, UMC has also asserted claims for infringement of the '345 Patent against SiS in a civil lawsuit in California's U.S. District Court, in which UMC seeks financial damages and other relief from SiS for patent infringement, misappropriation of trade secrets and other unlawful conduct.

In that case, filed in 2001, UMC alleges that SiS hired UMC engineers and improperly used proprietary UMC information to develop the technology SiS required to enter the semiconductor manufacturing business, in systematic violation of UMC's intellectual property rights.






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