Realtek Semiconductor Corp filed a lawsuit in California alleging MediaTek conspired with another company via a “secret litigation bounty” to discredit RealTek. The lawsuit claims that MediaTek used deceptive practices to monopolize the creation of chips installed in smart TVs and other devices.
“MediaTek conspired with Future Link, paying it a secret ‘bounty’ to file meritless patent claims to harass Realtek, manipulating the court system to increase Realtek’s costs and divert Realtek’s attention away from product development and innovation.”
MediaTek stands accused of conspiring with IPValue Management Inc (Future Link) to file false lawsuits against Realtek in an attempt to drive the company out of business, eliminating a competitor.
Realtek is one of the leading TV chip manufacturers and back in 2021 was facing “multiple meritless lawsuits by an alleged patent troll, Future Link Systems.” The lawsuits ruined Realtek’s reputation as a reputable TV-chip supplier as well as tied up a lot of the company’s resources. Reports state the lawsuits established a “harmful illusion of supply chain uncertainties in an already constrained industry.”
The companies will likely face a jury trial over these allegations, which Realtek is pushing for to defend its reputation and recover damages suffered by the accusations, which it plans to donate to charity. Realtek is citing unfair competition practices backed up by both federal law and California state laws.
As outlined in the complaint, “RealTek seeks to stop a modern robber baron and its hired henchmen, protect itself from ongoing injury, and guard against the destruction of competition in the critical semiconductor industry by holding defendants accountable for their conspiracy.”
Vice President of Business Development for IPValue George Park said his company will defend itself and responded to the claims:
“Realtek’s complaint is full of misleading statements, and IPValue looks forward to vigorously defending itself. Realtek was one of several companies against whom Future Link brought an action in 2021 [and was not] singled out. Realtek did not establish that any portion of the license agreement [with MediaTek] is unlawful. Future Link dismissed the cases against Realtek for the sole reason that Realtek’s products became licensed under the patents through a deal that Future Link did involving a Realtek supplier.”