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November 30, 2012

Electro Scientific Industries Gets $16.3M in Patent Infringement Settlement

By Ed Silverstein, TMCnet Contributor

All Ring, a technology company from Taiwan, will pay Oregon’s ESI (News - Alert) some $16.3 million in a patent infringement settlement, as well as will also stop selling the products accused of infringement, according to the deal.

The settlement and related costs will add about $15.8 million to Electro Scientific Industries’ (News - Alert) operating income and about $10 million to net income after income taxes for ESI’s fiscal Q3.

The claim centers on one of ESI's patents related to “electronic component tester technology,” according to the Portland Business Journal.

“ESI has made significant investments over many years to develop innovations in passive component test technology for our customers,” Sean Phillips, general manager, ESI Component Test and Inspection Division, said in a statement carried by TMCnet. “We are pleased that our efforts through the Taiwan court system have been rewarded by reaching a significant monetary award settlement with All Ring. This outcome is the result of ESI’s commitment to vigorously defend itself against those choosing to infringe our Intellectual Property.”

“Our customers depend on ESI for innovative test solutions to meet their challenges in the component test marketplace,” he added. “Defending our IP enables us to continue investing in solutions for our customers.”

ESI manufactures laser-based devices for the semiconductor sector, according to news reports. ESI also provides laser-based solutions to test micron and submicron features in electronic devices, semiconductors, LEDs and other components, the company said.

Additionally, it recently received a U.S. patent for "Optical Component Cleanliness and Debris Management in Laser Micromachining Applications." It relates to a laser beam being “completely enclosed to reduce contamination of the optical system components,” according to the U.S. patent office.

“Purge gas is injected through multiple locations in a beam tube assembly to ensure that the optical component surfaces sensitive to contamination are in the flow path of the purge gas,” adds a patent summary reported by Laser Focus World. 

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Edited by Allison Boccamazzo

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