Power Integrations Settles Patent Litigation With BCD Semiconductor

February 11, 2009 by Jeff Shepard

Power Integrations announced that it has agreed to terms of a settlement in its patent litigation with BCD Semiconductor. Under the terms of the settlement, BCD will accept an order from the U.S. District Court for the District of Delaware forbidding the manufacture and sale by BCD in the United States of the products involved in the lawsuit. The order will also prohibit the sale by BCD of such products for use in end products destined for the U.S. market. BCD also agreed to provide notice of the order to recent customers, distributors and other third parties.

The lawsuit, originally filed by Power Integrations in October 2007, alleged that certain PWM controller chips manufactured by BCD infringed U.S. patent nos. 6,107,851 and 6,249,876. The case had been scheduled for trial in September 2009.

"The intellectual property embodied in our patent portfolio is the foundation of our company, and we will not permit others to take advantage of our innovations," said Balu Balakrishnan, President and CEO of Power Integrations. "This settlement achieves that goal."

BCD maintains that it did not infringe any patents, and is aware that many of the patent claims in the lawsuit are currently under a final rejection in reexamination proceedings ongoing in the United States Patent and Trademark Office. BCD Semi states that it agreed to settle these patent claims for business reasons.

"This lawsuit made no business sense for us as it involves a product that is no longer used in the United States," said Chieh Chang, President and CEO of BCD Semi. "We believe that this lawsuit was a diversion from our goal to introduce new products that continue to provide cutting-edge solutions to our customers."