Mediatek: Realtek sues rival MediaTek to protect free and fair competition – Times of India

Realtek’s chip-making unit has sued its Taiwanese rival MediaTek in a US federal court. The lawsuit alleges that MediaTek has tried to file meritless lawsuits in the US to disrupt its business. According to a report by the news agency Reuters, the lawsuit claims that the Taiwanese chipmaker paid a company that sues over patents a “secret litigation bounty”.
To drive Realtek out of the market, MediaTek has allegedly conspired with IPValue Management Inc. The company accused MediTek of trying to monopolise the industry for chips used in smart TVs and set-top boxes.
MediaTek owns nearly 60% of the global market share for television chips, the lawsuit added. However, both MediaTek and IPValue have declined to comment, citing the ongoing litigation.
The lawsuit will ‘protect free and fair competition’: Realtek
In a statement, Realtek has explained the reason to file the lawsuit. The company said that this lawsuit will “protect free and fair competition in the industry” and “prevent further harm to the public.”
In 2019, Realtek said MediaTek signed a patent licensing agreement with IPValue subsidiary Future Link Systems LLC. This deal included the secret “bounty” agreement.
The lawsuit mentions that this agreement was revealed last year in patent litigation involving Future Link in West Texas federal court and at the U.S. International Trade Commission (ITC). Realtek alleged that Future Link kept details of the agreement “buried under confidentiality obligations and protective orders.”
The ITC called the agreement “alarming” and said it “may well be untoward and actionable”. Meanwhile, the federal court said that the agreement was “improper” and “should be discouraged as a matter of public policy.”
Realtek’s lawsuit mentioned that soon after the ITC criticised the agreement, Future Link settled several other patent cases against tech companies including MediaTek’s rival Amlogic.

The company also alleged that MediaTek is using the patent lawsuits which seek to take it by allegedly infringing chips off the market. With this lawsuit, Meditek wants to suggest to customers that Realtek may be an “unreliable supplier” for the television chip industry.
Realtek has asked the court to order the companies to end the alleged conspiracy. The company has also asked for an unspecified amount of money damages.