Infineon Refutes Statements Made by MACOM

Correcting the misstatements made by Macom Technology Solutions, Infineon claims that the lawsuit between Infineon Technologies and Macom is still in its early stages. According to a published press release by MACOM, they Announced the final order of Preliminary Injunction Against Infineon. However, the court has made no decision on this case soo far. Macom has neither won the case nor is a settlement imminent.

According to Infineon - "Macom’s dispute with them originates from irreconcilable business philosophies. While Infineon generally welcomes competition and has entered into license agreements with many of its competitors allowing broad freedom to operate, Macom prefers exclusion." However, whether Macom or Infineon ultimately prevails in this lawsuit, the outcome should determine whether Macom continues to be licensed to certain Infineon Americas patents. Infineon Americas owns the patents at issue and has the rights it needs for its own operations.

Origins of the Lawsuit

Macom had been willfully infringing patents owned by Infineon Americas by operating outside the scope of a license agreement. Macom admitted to the infringement but rejected Infineon America’s offer to broaden the license agreement to cover the infringement. Infineon Americas therefore terminated Macom's license in March 2016. Macom then filed a complaint in the United States District Court for the Central District of California in Los Angeles. While no decision has been made on the merits, the court dismissed claims in Macom's second attempt at a complaint in October 2016 (Macom had voluntarily amended its first one). Macom has recently filed a third version. Infineon believes that the third complaint is still flawed and will move to dismiss this week. Once the lawsuit eventually proceeds, Infineon expects a decision within 1-2 years.

To preserve the status quo until the court reaches a decision, the court issued a preliminary injunction in the meantime. The preliminary injunction serves to shield Macom from irreparable harm should Macom ultimately succeed on its theory, while Infineon can seek to recover damages from Macom later if Infineon prevails. Infineon feels that the preliminary injunction is not a threat to their business plans.

Infineon states that contrary to the press releases by Macom, the court has made no decision that Infineon has "acted improperly in trying to operate in Macom's exclusive field." Macom had given the impression through press releases, analyst calls, and customer communication, that it has won the case or a settlement is imminent, however this is not the case just yet.