Xbox chip maker IPO to proceed despite patent suit

Scottish microelectronics company, Wolfson Microelectronics, intends to go ahead with its initial public offering (IPO), due to take place this week, despite a patent infringement suit from US competitor, Cirrus Logic.

Wolfson and Cirrus Logic both make audio digital-to-analog converters (DACs) that are used in games consoles, STBs (set-top boxes) and other entertainment products.

One of Wolfson's major clients is Microsoft, which uses Wolfson audio DACs in its Xbox console. Cirrus Logic DACs are used in Sony's PlayStation.

Cirrus Logic announced last Thursday that it had filed a patent infringement suit against Wolfson in the US District Court for the Southern District of California.

The suit related to 15 of Wolfson's DACs, which Cirrus Logic said infringed US Patent Numbers 6,492,928 and 6,011,501.

The company was seeking damages and a permanent injunction against Wolfson selling or importing its products into the US, it said.

Wolfson would defend itself against Cirrus Logic's allegations, which it did not believe had merit, it said.