Realtek sues semiconductor rival MediaTek over patent ‘bounty’ agreement

Realtek Semiconductor Corp sued rival Taiwanese chipmaker MediaTek Inc in Northern California federal court on Tuesday, claiming MediaTek paid a company that sues over patents a “secret litigation bounty” to file meritless lawsuits in the United States to disrupt its business.

The lawsuit accuses MediaTek of conspiring with IPValue Management Inc in an effort to drive Realtek out of the market and monopolize the industry for chips used in smart televisions and set-top boxes.

MediaTek owns nearly 60 percent of the global market share for television chips, the lawsuit said.

Realtek said in a statement that it filed the lawsuit to “protect free and fair competition in the industry” and “prevent further harm to the public.”