Realtek sues semiconductor rival MediaTek over patent 'bounty' agreement


FILE PHOTO MediaTek chips are seen on a development board at the MediaTek booth during the 2015 Computex exhibition in Taipei Taiwan June 3 2015.  REUTERSPichi Chuang

FILE PHOTO: MediaTek chips are seen on a development board at the MediaTek booth during the 2015 Computex exhibition in Taipei, Taiwan, June 3, 2015. REUTERS/Pichi Chuang

(Reuters) - Realtek Semiconductor Corp sued rival Taiwanese chipmaker MediaTek Inc in Northern California federal court on Tuesday, claiming MediaTek paid a company that sues over patents a "secret litigation bounty" to file meritless lawsuits in the United States to disrupt its business.

The lawsuit accuses MediaTek of conspiring with IPValue Management Inc in an effort to drive Realtek out of the market and monopolize the industry for chips used in smart televisions and set-top boxes.

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