Creative Technology subsidiary ZiiLabs settles patent lawsuits

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Patent aggregator RPX Corp. will make payments to Creative Technology’s wholly owned subsidiary ZiiLabs to settle ZiiLabs’ patent infringement lawsuits in the U.S., it said in a filing to SGX on Saturday.

Under the agreement, ZiiLabs assign the remaining rights in its patent portfolio to the aggregator, it said. RPX specializes in patent risk and discovery management services for clients.

In December 2017, ZiiLabs had filed a complaint with the U.S. International Trade Commission seeking injunctions against eight companies: Nvidia, Nintendo, Asus, Micro-Star International, Gigabyte, PNY Technologies, EVGA and Zotac. It had also filed a patent infringement lawsuit against Nvidia in the U.S., in which it sought both damages and injunctions.

ZiiLabs’ portfolio had included patents related to the graphics, processor and 3D spaces, with four of the patents being asserted in the ITC complaint and lawsuit, it said at the time.

In January 2018, the U.S. ITC said it would investigate the complaint over patents related to certain graphics processors and products using them, including graphics cards, motherboards, artificial intelligence modules/platforms, laptops, computer tablets, mobile workstations, PC gaming systems, gaming consoles, streaming media players, and data centers.

Creative estimated in the Saturday filing that the payment would contribute around S$0.35, or around US$0.25, to its earnings per share for the quarter ending 31 March.

For its fiscal first quarter ended 30 September, Creative had reported a loss per share of US$0.09, compared with earnings per share of US$0.32 in the year-earlier quarter.

Intel, Apple and Samsung had taken an non-exclusive license to ZiiLabs’ patent portfolio, it said in the December 2017 statement.

In October 2017, Creative had announced ZiiLabs had filed an earlier patent infringement lawsuit in the U.S. against Nvidia over four different patents.

In July 2017, ZiiLabs settled disputes with RPX Corp., including complaints with the U.S. International Trade Commission, in a deal which included payments from RPX and assigning certain patent portfolio rights to RPX.

This article was originally published on Sunday, 11 February 2019 at 15:32 SGT; it has since been edited.

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