Amicable Settlement Reached between Actions Semiconductor and SigmaTel

Recently Actions Semiconductor Co. Ltd. and American SigmaTel Inc. reached an agreement of amicable settlement on the patent dispute over MP3.

According to the agreement, Actions Semiconductor and SigmaTel will withdraw all the actions against each other and their clients; within three years, no action, on the ground of a third party's act of patent infringement or litigation, will be instituted by either party against the opposite party or its clients. In addition, Actions Semiconductor and SigmaTel also reached agreement on the matter of patent licensing. From now on, the products of Actions Semiconductor will not be faced with restrictions when entering the American market.

The patent dispute over MP3 between Actions Semiconductor and SigmaTel broke out in early 2005 when SigmaTel, who sued Actions Semiconductor for patent infringement, requested the U.S. International Trade Commission to impose a ban on the products of Actions Semiconductor. In response, Actions Semiconductor instituted a counteraction against SigmaTel for patent infringement.