Realtek Files Lawsuit Against Mediatek, Alleging Conspiracy To Monopolise TV Chip Market

Realtek Semiconductor Corp has taken legal action against rival Taiwanese chipmaker MediaTek Inc in a US’ Northern California federal court. Realtek claims that MediaTek engaged in a conspiracy with IPValue Management Inc, a company known for filing patent lawsuits, in an effort to disrupt Realtek's business and monopolise the industry for chips used in smart televisions and set-top boxes.

According to the lawsuit, Realtek alleges that MediaTek paid a "secret litigation bounty" to IPValue to file meritless lawsuits in the United States. These lawsuits aimed to remove Realtek's allegedly infringing chips from the market and undermine the company's reputation as a reliable supplier.

Realtek states that these actions by MediaTek were intended to drive them out of the market and secure a dominant position in the television chip industry.

MediaTek currently holds nearly 60 per cent of the global market share for television chips.

Realtek claims that the alleged conspiracy between MediaTek and IPValue came to light during patent litigation involving an IPValue subsidiary called Future Link Systems LLC. The details of the "bounty" agreement were revealed during these proceedings, leading to criticism from the US International Trade Commission (ITC) and a West Texas federal court. Both entities expressed concerns about the agreement's propriety and potential for legal action.

Realtek is seeking to protect free and fair competition in the industry and prevent further harm to the public by filing this lawsuit. The company requested that the court order the alleged conspiracy to cease and seeks unspecified financial damages from the defendants.