TSMC fights abuse of patent system

TSMC is taking the IP war to the trolls – instigating a pre-emptive legal strike against Zond LLC.

In February Zond sued Intel for infringing its patents relating to thin film deposition. TSMC is manufacturing mobile SOCs for Intel. Early this month Zond sued Fujitsu.

TSMC said it sued “to protect itself from the most recent recurring plague” where a company sues another “for the purpose of obtaining settlement money to which it is not entitled.”

TSMC says Zond is seeking licensing fees “that bear no reasonable relation to the value” of the patents.

Zond is a nine year-old privately held US company.

Recently an Intel lawyer complained that royalties on smartphone patents were costing almost as much as the BOM.

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