Apple to pay $5M to settle patent infringement case with Elan Microelectronics Corp

Apple agreed to pay a $5 million settlement to Taiwanese touch chip and module maker Elan Microelectronics Corp that will provide both companies with access to each other’s patents and end ongoing patent infringement cases, according to a report from Reuters.

Elan Microelectronics Corp, a Taiwanese touch design company, said on Thursday that Apple Inc will pay $5 million as part of a settlement in a patent infringement case. The statement said the two companies would also exchange authorizations to use each other’s patents.

Taiwan-based Elan Microelectronics Corp originally sued Apple in 2009 claiming Apple infringed on their multitouch patents with the iPhone, iPad, iPod touch, MacBook, and Magic Mouse. Elan was originally seeking bans on the products in the United States. According to a Cnet report from 2010, the patent covered “touch-sensitive input devices with the ability to detect the simultaneous presence of two or more fingers.”

Reuters reported that Apple counter-sued Elan in 2009, and in June of last year, the U.S. International Trade Commission ruled Apple “had not violated U.S. trade law.” Following that decision, Elan made a post on their website claiming they would seek review of the decision after USITC Chief ALJ recommended to the ITC that Elan “failed to show that Apple products infringe the asserted claims.” The Chief ALJ also, claimed “Elan has not shown significant licensing activities of the 5,825,352 patent (the 352 patent) within the U.S. sufficient to satisfy the domestic industry requirement.” However, at the time of that review, the USITC also claimed Apple had not proven Elan’s patent claims were invalid.