SANTA CLARA, Calif.--(Business Wire)--
Hon Hai Precision Industry Company, Ltd. and Foxconn Electronics,
Inc. (collectively, "Foxconn"), have filed suit against Molex, Inc. in
the U.S. District Court for the Northern District of Illinois alleging
a range of business torts and anti-competitive behavior, including
tortious interference with prospective business advantage, deceptive
trade practices, breach of contract, and anti-trust violations.
The lawsuit alleges that Molex has made false and misleading
statements to Foxconn's customers and prospective customers indicating
that Foxconn's DisplayPort(R) products which use through-hole
technology are not licensed and infringe Molex's patent rights.
Foxconn alleges that Molex's conduct is wrongful and contrary to
Molex's valid and binding agreements which license to Foxconn all of
Molex's patent claims necessary to implement the DisplayPort(R)
Interface Standard, including those claims that permit use of
through-hole technology for interface intermateability of electronic
circuits. Foxconn seeks damages, injunctive relief and a Declaratory
Judgment.
The Video Electronics Standards Association ("VESA") has published
the DisplayPort(R) Interface Standard, a standard for a digital
audio/video interconnect, intended to be used primarily to improve and
standardize interface intermateability between a computer and a
display monitor. Molex agreed to and did in fact grant to Foxconn a
license to patent claims necessary to implement the DisplayPort(R)
Interface Standard. The "necessary claims" Molex licensed include what
is known in the industry as surface mount technology ("SMT") and
through-hole mounting technology ("TH"), which are different methods
for mounting electronic circuits.
According to Foxconn, despite the valid and binding license, Molex
sent letters and/or made oral statements to Foxconn's customers and
prospective customers, asserting that Foxconn is acting outside the
scope of the license and is infringing Molex's patents with respect to
Foxconn's DisplayPort(R) products that use TH.
"We believe that Molex's wrongful and anti-competitive actions
have cost Foxconn significant business and have created unwarranted
uncertainty regarding Foxconn's rights to manufacture and sell its
DisplayPort Interface products," stated Edmund Ding, Foxconn's
spokesperson. "Foxconn obtained a valid license from Molex and could
not stand idly by and permit Molex to deny our legitimate rights while
interfering with our business relationships. Foxconn will vigorously
assert all legal measures necessary to protect its legitimate business
interests."
Foxconn was founded by CEO Terry Gou in 1974. Mr. Gou was inspired
by a belief that electronics products would be an integral part of
everyday life in every office and in every home. Foxconn embodies a
devotion for integrating expertise with mechanical and electrical
parts and an uncommon concept to provide the lowest "total cost"
solution to increase the affordability of electronics products for all
humankind. Today, Foxconn is the world's largest contract electronics
manufacturing firm.
Hon Hai/ Foxconn Spokesperson
Edmund C.A. Ding, +886-2-2268-3466, ext. 1503
edmund.ca.ding@foxconn.com
Copyright Business Wire 2008
