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Hon Hai Files Patent Infringement Suit.

CYPRESS, Calif.--(BUSINESS WIRE)--Nov. 5, 1999--

Hon Hai Precision Industry Co. Ltd. of Taipei, Taiwan and Foxconn Electronics Inc. of California Friday announced that a patent infringement lawsuit has been filed against four Taiwanese companies and their U.S. affiliates. The suit was filed last Monday in U.S. District Court in Los Angeles.

Hon Hai, with headquarters in Taipei, and its exclusive U.S. licensee Foxconn contend in the suit that Advanced-Connectek Inc., a Taiwan corporation, Advanced-Connectek USA Inc., a California corporation; Wieson Electronic Co. Ltd., a Taiwan corporation, Wieson America Inc., a California corporation; Tekcon Electronics Corp., a Taiwan corporation; Tekcon American Corp., an Illinois corporation; and Tact Precision Industrial Co. Ltd., a Taiwan corporation, have been infringing two of Hon Hai's U.S. patents.

The patents (U.S. Patent Numbers 5,800,207 and 5,851,125), granted in 1998, concern proprietary mechanisms and design methodologies for arranging different I/O connectors at different levels. Additionally, Tekcon and Tekcon American are charged with infringing another Hon Hai patent (U.S. Patent Number 5,622,523 granted in 1997). Hon Hai connectors utilizing the patented technology are used on computer systems for attachment of peripherals.

Hon Hai maintains that the defendant companies have been manufacturing products in violation of its patents since last year and notified each of the defendants of the infringement in writing between Feb. 4 and Sept. 21 of this year. Hon Hai is seeking immediate injunctive relief to halt distribution of products in violation of their patents, and will seek damages and reimbursement of legal fees and costs in the suit.

Hon Hai -- as one of the world's largest manufacturers of PC connectors -- holds more than 1,500 U.S., Taiwan and China patents related to the design of PC components and enclosures. The suit is the second patent infringement lawsuit filed by Hon Hai in the last 6 months.

"Hon Hai has long occupied the high-quality, low-cost PC connectors niche due to the company's substantial investments in our global manufacturing and research and development capabilities," said Brad Hill of Foxconn International.

"While Hon Hai's management will continue to maintain our aggressive global expansion and growth strategy beyond our core connector business, including PC enclosures and bare-bones assembly, it is vitally important that we continue to protect our patents and our large-scale R&D investments."

The Hon Hai Group had global revenues in excess of US$1.5 billion last year. The company, publicly listed on the Taiwan Stock Exchange (Q.HHP) is Taiwan's biggest PC connector and case maker.

Named by Business Week this year as 33rd out of the 100 Best-Performing Global Information Technology Companies, Hon Hai has been constantly upgrading manufacturing capabilities in a wide range of PC-related products, and now has facilities in Taiwan, Mainland China, Malaysia, Singapore, Scotland, Ireland, Mexico, Brazil and the United States.

On Sept. 30 of this year, Hon Hai marked its 25th anniversary by selling 50 million shares in the form of global depositary receipts on the London Stock Exchange. Through the sale -- the company's first ever to international investors -- Hon Hai raised US$347 million to support the company's on-going global expansion strategy.
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Publication:Business Wire
Geographic Code:9TAIW
Date:Nov 5, 1999
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