San Francisco-based Avago Technologies, a vendor of analog chips, announced Monday that it would drop its patent infringement suit against San Jose's Cypress Semiconductor Corp. The move puts an end to what otherwise could have been a contentious instance of business litigation.

The problem, according to Avago, is that Cypress Technologies' optical navigation technology OvationONS infringed on patents that Avago already had. OvationONS is used in handled devices and helps screens on technology gadgets like smartphones respond to users' fingertips. Cypress Technologies, of course, denied Avago's allegations.

Cypress Technologies paid no damages and admitted no wrongdoing, though whether it will keep making and using its OvationONS technology in the same way it has in the past remains to be seen. It is possible (though not at all confirmed) that the two companies reached some kind of agreement with which they are both satisfied.

It is interesting that the suit was dropped because in some cases, these types of lawsuits concern technology that is at the very core of what keeps a company in business. Certain assets can be so valuable that without them, some companies would not be able to continue operating. That is why many companies enlist the aid of attorneys who are familiar with corporate and business law; having knowledgeable counsel means they can be vigilant and aggressive about protecting the things that keep the company going.

Source: The EE Times, "Avago drops patent suit against Cypress," Dec. 12, 2011