Zoran Corporation, a US registered company with strong Israeli roots, announced on 26 January 2006 today that they, and their wholly-owned subsidiary, Oak Technology, Inc., have reached a settlement with Taiwanese company MediaTek, Inc. regarding pending patent litigation. Under the agreement, both parties are to dismiss all claims and counterclaims in all pending lawsuits. Proceedings before the US International Trade Commission (ITC) are also to be dropped.
Additionally, Zoran, Oak and MediaTek are to grant each other non-exclusive licenses of the patents that were the subject of the litigation, and additional patents relating to optical storage devices for personal computer products.
MediaTek are to make a cash payment of $55 million to Zoran, and further royalty payments of up to $30 million over the next 30 months based on future sales.
Based on current share prices, Zoran is worth around $860 M
