Local touch IC designer sues firm in mainland over patent infringement

In a statement released Friday, the Taiwanese IC designer, which specializes in touch pad module solutions for notebook computers, said it has sued Suzhou-based Pixcir Microelectronics Co. and one of its distributors for infringing its patent related to capacitive touch devices.

Elan said it has asked the court to order the accused Chinese firms to immediately stop their misconduct and pay damages for the financial losses caused by the technology infringement.

Elan did not indicate how much it was asking for in compensation.

The lawsuit was the second in a week initiated by Elan against companies it alleges stole its technology.

On Thursday, Elan said it had filed a complaint with Taiwan's Intellectual Property Court alleging eGalax eMPIA Technology Inc., another Taiwanese IC designer, infringed its capacitive touch IC patent.

Due to the litigation against eGalax eMPIA, shares of the accused came under heavy pressure on the Taiwan Stock Exchange Friday, falling 5.47 percent to close at NT$76.00 (US$2.56) with 2.83 million shares changing hands. The benchmark weighted index ended up 0.68 percent at 8,015.14.

EGalax eMPIA said the company always respects intellectual property rights and has never intended to infringe the patents of others, adding that it would consult with its lawyers on the best way to resolve the litigation to protect shareholders' interests.

In January 2012, Elan settled a patent infringement complaint against U.S.-based Apple Inc. out of court, with the U.S. consumer electronics giant agreeing to pay US$5 million to the Taiwanese company.

Before the settlement, Elan had accused Apple of infringing its patents related to a method of using two fingers to perform operations on a touch pad or touch screen.

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