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Court of Appeals Rules in Favor of Silicon Image and Against Genesis Microchip
SUNNYVALE, Calif., April 6, 2006 – Silicon Image, Inc. (Nasdaq: SIMG), a leader in the secure storage, distribution and presentation of high-definition content, today announced that the U.S. Court of Appeals for the Federal Circuit (the Federal Circuit) has rejected Genesis Microchip’s attempt to undo a Memorandum of Understanding it signed with Silicon Image on December 18, 2002 (the MOU). The MOU was intended to settle Silicon Image’s patent infringement claims against Genesis. After Genesis repudiated certain key provisions of the MOU, the U.S. District Court for the Eastern District of Virginia conducted extensive hearings on the formation and meaning of the MOU. In its opinion issued on July 15, 2003 the District Court rejected Genesis’ interpretation of the MOU, and found that Genesis had knowingly and willingly agreed to pay, in return for certain licenses, a monetary settlement, license fees and running royalties on all Genesis products that complied with the Digital Visual Interface (DVI) and High Definition Multimedia Interface (HDMI) standards. After the District Court issued its opinion, Genesis persisted in challenging the MOU, and twice appealed the District Court’s opinion to the Federal Circuit. By its affirmance today, the Federal Circuit upheld the District Court’s findings of fact and conclusions of law in every respect. Specifically, the Federal Circuit’s ruling rejected Genesis’s arguments that (i) the MOU provides for royalties on only some DVI and HDMI products, (ii) the MOU, as interpreted by the District Court, constitutes patent misuse, and (iii) the District Court incorrectly construed the claims of Silicon Image’s patents. Silicon Image’s president, Steve Tirado, said “We are extremely pleased with the Court of Appeals’ decision, which confirms the MOU’s force and effect, and affirms the District Court’s finding that Genesis knowingly and willingly entered into the MOU. Silicon Image has always been at the forefront of innovation in both developing and implementing digital solutions. This decision vindicates our efforts to protect our intellectual property and to obtain appropriate compensation from those who use it.” About Silicon Image, Inc
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