Fairchild and Infineon Reach Patent Settlement, Cross-License Agreement

Fairchild Semiconductor and Infineon Technologies announced they have reached a settlement of lawsuits. The companies also announced that they have entered into a broad cross-license related to semiconductor technology, the terms and conditions of which were not disclosed.

Infineon initiated the lawsuit in November 2008 in the U.S. District Court for the District of Delaware. The patents in the suit and counter suit consisted of fourteen patents related to super-junction power transistors along with trench power MOSFETs and IGBT power transistors.

The lawsuit has been settled through a broad patent cross license relating to semiconductor technology. As part of the agreement, Fairchild will make payments to Infineon.

Infineon and Fairchild will inform the U.S. District Court, District of Delaware, that they had reached a settlement and will file a stipulation of dismissal. Infineon, a global leader in the semiconductor industry, is currently in patent licensing discussions with a number of semiconductor companies. Infineon views such discussions as essential to the continuing protection of its intellectual property and business interests.

Fairchild said it will record a $6 million charge in the fourth quarter related to the settlement and cross-license.