O2Micro International Announces Court Enters Judgment Against Taiwan Sumida and Grants Injunction Against MPS-Based Inverter Modules


Thursday April 13, 5:00 am ET


SANTA CLARA, Calif. & GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)--April 13, 2006--O2Micro® International Limited (Nasdaq:OIIM - News), a leading supplier of innovative power management and security components and systems for the Computer, Consumer, Industrial, and Communications markets, announced today that judgment has been entered and injunction granted in its lawsuit against Taiwan Sumida Electronics Inc. ("Sumida") in the United States District Court in Marshall, Texas, following trial in November 2005.


In a memorandum and order entered on April 12, 2006, the Court affirmed the jury's finding that Sumida's infringement was willful, affirmed the jury's finding of validity, awarded the full amount of $4,000,000 in damages including enhanced damages, declared the case exceptional and awarded attorney's fees and cost. The amount of attorney's fees will be subject to a fully supported fee application in accordance with the rules but will not exceed $3,000,000. In addition, the Court rejected a challenge by Sumida to the jury verdict finding of induced infringement and entered judgment in favor of O2Micro. The Court granted Sumida's motion for judgment as a matter of law on contributory infringement because Sumida's sales of its inverter products occurred overseas.


The court also granted a permanent injunction preventing Sumida, its officers, agents, servants, employees, and attorneys, and those persons acting in active concert or participation with them who receive actual notice of the order by personal service or otherwise from manufacturing, using, selling, offering to sell or importing into the United States any inverter modules that infringe claims 1, 2, 9, 12, or 18 of U.S. Patent No. 6,396,722 including but not limited to inverter modules incorporating inverter controllers manufactured by Monolithic Power Systems having model numbers MP 1010, MP 1011, MP 1015, MP 1010B, MP 1017, MP 1018, MP 1025 or belonging to those same families of Monolithic Power Systems inverter controllers, or any colorable imitation of the inverter modules and/or inverter controllers, that infringe U.S. Patent No. 6,396,722 and from otherwise infringing or inducing others to infringe U.S. Patent No. 6,396,722 for the life of the aforesaid patent.


Sumida was further ordered to label prominently the inverter module products covered by the order and their accompanying product literature "Not for Sale in, Use in, or Importation into the United States." O2Micro expects that Sumida will file further post-trial motions with the Court challenging the judgment and injunction. Sumida may also appeal the case to the U.S. Court of Appeals for the Federal Circuit.


About O2Micro

Founded in April 1995, O2Micro develops and markets innovative power management, and security components and systems for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, SmartCardBus® and Security products, such as VPN/Firewall system solutions.


O2Micro International maintains an extensive portfolio of intellectual property. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.


O2Micro, the O2Micro logo and combinations thereof are registered trademarks of O2Micro.




Joseph Lin, 408-987-5920