Taipei, Aug. 28, 2008 (CENS)--According to newswire, LG Electronics Inc. of South Korea and Quanta Computer Inc. have reached settlement over a patent dispute, with Quanta agreeing to pay LG an undisclosed number of royalty for building the designs into its notebook computers.

LG filed lawsuit against Quanta in 2000, charging the Taiwanese notebook-computer giant with illegally integrating its patented microprocessor and chipset into its notebook computers. LG said although Quanta procured these devices from Intel, who was licensed to make these chips, these devices were prohibited by the patents from going with other systems outside Intel`s.

In the beginning, Quanta stressed it had already paid Intel royalty, trying to justify its stance of refusing to pay royalty to LG. However, the Taiwanese manufacturer gave way in a talk last week with LG, agreeing to pay the money for using LG technologies for connecting the microprocessor and chipset to peripheral components.

People had felt that Quanta would escape unfavorable court ruling since a Federal court in California last year found LG "patent exhausted" and discontinued the case.

Regardless of the argument, LG has placed Quanta with subcontracts for around 600,000 systems of 14.1-inch and 15.4-inch notebook computers combined this year, likely making Quanta its biggest contract supplier of the computers.

(by Ken Liu)