Summary
Monolithic Power Systems, Inc. (MPWR) filed an 8-K on November 4, 2013, to report the final resolution of a significant patent litigation matter. The company received a cash payment of approximately $9.5 million from O2 Micro International, Ltd. This payment relates to attorneys' fees and non-taxable costs, plus interest, awarded to MPWR following a patent infringement case won by MPWR in 2010. The company had previously been awarded approximately $0.3 million in taxable costs, bringing the total award to over $9.8 million. While this represents a successful outcome and the receipt of substantial funds, investors should note that O2 Micro has not yet indicated whether it will pursue further appeals to the U.S. Supreme Court. Should O2 Micro appeal and be successful, MPWR may be required to return a portion or all of the received payment. The filing provides clarity on the finality of the appellate ruling, but a slim possibility of further legal action remains.
Key Highlights
- 1Monolithic Power Systems, Inc. (MPWR) received a cash payment of approximately $9.5 million on November 4, 2013.
- 2The payment is related to attorneys' fees and non-taxable costs, plus interest, awarded in a patent litigation case against O2 Micro International, Ltd.
- 3The original District Court award for these fees and costs was approximately $9.1 million.
- 4MPWR had previously won the patent litigation in 2010 and was awarded approximately $0.3 million in taxable costs.
- 5O2 Micro's appeal of the District Court's judgment to the Federal Circuit was affirmed in August 2013.
- 6O2 Micro's petition for rehearing was denied by the Federal Circuit on October 16, 2013.
- 7There is a possibility that O2 Micro may seek review from the U.S. Supreme Court, which could require MPWR to return funds if successful.