Skip to Content

BEIJING, China (AP) – Intel Corp., the world’s largest chip maker, said Monday it has settled a copyright infringement dispute with a Chinese maker of telecommunications and network equipment.

Santa Clara, Califofnia-based Intel sued Shenzhen Donjin Communication Technology Co. in 2004 for allegedly infringing its technology used for touch-pad telephone systems. Intel accused the company of copying parts of the software used by its Dialogic brand of high-end communications equipment. Intel has since sold the unit off.

In 2005, a unit of Shenzhen Donjin countersued, saying Intel engaged in monopolistic practices.

Intel spokesman Chuck Mulloy said Monday it no longer made strategic sense to pursue the litigation, and the two companies brokered a licensing deal over the disputed technology. The companies have agreed to keep confidential the terms of the out-of-court settlement.

”Continuing a lawsuit doesn’t benefit each company’s best commercial interests,” the companies said in a joint statement. Beijing Donjin Xinda Technology Co., the Shenzhen Donjin unit that filed the countersuit, also signed the statement.

Industry analysts said they were surprised by the speed of the resolution but added Intel is pouring money into China to tap into booming computer and microprocessor demand. The company likely wanted to eliminate any potential political or business roadblocks.

Intel has committed to investing $4 billion (euro2.95 billion) in China by 2010, including a $2.5 billion (euro1.85 billion) chip factory in the northeastern city of Dalian that will be used to make chip sets, which shuttle data from the microprocessor to other system components.

”Everybody wants to keep politics out of the industry as much as possible,” said Jim McGregor, director of semiconductors and enabling technologies research at market researcher In-Stat. ”Anything that gives the U.S. or Chinese government leverage in the current political climate is something both sides want to avoid.”

The settlement comes a week before the second meeting of the U.S.-China Strategic Economic Dialogue in Washington, where Chinese protection of intellectual property rights will likely be discussed.

Last month, the U.S. filed two complaints to the World Trade Organization, challenging China’s lax protection of copyrights, as well as its restrictions on the distribution of foreign movies, music and printed materials.

Keep Reading

Most Popular

A Roomba recorded a woman on the toilet. How did screenshots end up on Facebook?

Robot vacuum companies say your images are safe, but a sprawling global supply chain for data from our devices creates risk.

A startup says it’s begun releasing particles into the atmosphere, in an effort to tweak the climate

Make Sunsets is already attempting to earn revenue for geoengineering, a move likely to provoke widespread criticism.

10 Breakthrough Technologies 2023

Every year, we pick the 10 technologies that matter the most right now. We look for advances that will have a big impact on our lives and break down why they matter.

These exclusive satellite images show that Saudi Arabia’s sci-fi megacity is well underway

Weirdly, any recent work on The Line doesn’t show up on Google Maps. But we got the images anyway.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.