EXPENDITURE STRATEGY - ACTIONS SEMICONDUCTOR

In March 2006, the U.S. International Trade Commission said Actions Semiconductor had infringed on two SigmaTel patents for an audio-processing chip and imposed a 29-cent tariff on each chip when sold in the U.S.

1. Actions Semiconductor Co., a Chinese maker of chips for portable electronics, settled all patent litigation with SigmaTel Inc., a maker of mixed-signal multimedia semiconductors, and will begin importing its products to the U.S.
2. The companies agreed to a cross- licensing deal, which will allow Actions' products to be imported to the U.S. without restrictions.

Avoid stepping on others toes. It is expensive.

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