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Volkswagen Strikes Deal with Broadcom to End Patent Lawsuit: Source

Volkswagen logo. (Photo: Reuters)

Volkswagen logo. (Photo: Reuters)

Volkswagen struck a deal with U.S. semiconductor maker Broadcom, ending a billion-dollar patent lawsuit that pitted the carmaker against its supplier.

Germany's Volkswagen has struck a deal with U.S. semiconductor maker Broadcom, ending a billion-dollar patent lawsuit that pitted the carmaker against its supplier, a source close to Volkswagen told Reuters on Wednesday. The companies signed an out-of-court settlement, the source said, adding that a court hearing scheduled for Friday had now been cancelled. Volkswagen declined to comment. Broadcom did not immediately respond to a request for comment.

Der Spiegel news magazine reported in early November that California-based Broadcom had made a patent claim for more than $1 billion against Volkswagen and threatened to seek a judicial ban on the production of several car models. Patent claims brought against manufacturers by supplier firms, often seeking large compensation amounts, are increasingly frequent as the industry's digital transformation advances.

The Volkswagen Group had also recently announced management restructuring in India, as part of its plan to "sustainably strengthen its position", spearheaded by group firm Skoda. As part of the exercise, Skoda Auto India Managing Director (MD) Gurpratap Boparai will become MD of the Volkswagen India with effect from January 1, 2019.