Administrative Law Judge Paul J. Luckern in the United States International Trade Commission issued an initial determination that MediaTek's chipsets do not infringe two patents, which had been asserted against MediaTek byZoran Corporation and Oak Technology. However, ALJ Paul J. Luckern also preliminarily found that although a few MediaTek's old model chipsets do not infringe on 2 of Zoran's Claims in relation to its U.S. Patent No. 6,584,527 ("the 527 patent"), they infringe Claim No. 3 of the 527 patent.

The finding concerns only certain MediaTek's old model chips. MediaTek has already developed a design-around solution that is specifically crafted to avoid infringement of Zoran's 527 patent.

According to MediaTek, the design-around solution was carefully developed with thorough input from several teams of U.S. patent counsels whom have concluded that the new design does not infringe upon Zoran's patent.

Additionally, Zoran and MediaTek have mutually agreed that the design-around chips are not within the scope of this investigation. As such, these new generation chipsets will not be affected by the result of this investigation. MediaTek has already provided its customers with the new generation chipsets to ensure that customers will have an uninterrupted supply.

MediaTek will appeal the initial determination on the infringement of Claim 3 of the 527 patent to the full ITC, asking for a review of this matter. The ITC's schedule anticipates a final resolution by September 2005. MediaTek believe that it has excellent invalidity and noninfringement defenses on Zoran's 527 patent and will immediately and vigorously pursue on appeal to the full ITC of this matter.

In addition, with respect to the patent infringement case MediaTek filed against Zoran in the ITC, the case is moving along smoothly and a hearing is scheduled on MediaTek Incorporation May. 17, 2005. The initial determination is expected to be issued during August.