Note 18 - Contingencies

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Contingencies Disclosure [Text Block]

18. CONTINGENCIES

Legal Proceedings

The Company is involved in several litigation matters relating to its intellectual property, as detailed below. While the Company cannot make any assurances regarding the eventual resolution of these matters, the Company does not believe at this time that the final outcomes will have a material adverse effect on its consolidated results of operations or financial condition.

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2

Micro, Inc. v. Texas Instruments Japan Limited.

In

November

2013,

the Company filed a patent infringement suit against Texas Instruments Japan Limited (“Texas Instrument”) in the Civil Division of the Tokyo District Court. The matter was closed in

August

2016

with the Court finding no infringement by the defendant on the Japanese patent in question, and the Company electing not to file an appeal.

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2

Micro (China) Co., Ltd. v. Legendsec Information Technology (Beijing) Inc., et al., Chengdu Intermediate Court, China.

The Company filed a trade secret infringement suit against Yunfeng Li, Chengdu Feitong Technology Co., Ltd. and Legendsec Information Technology (Beijing) Inc. (“Legendsec”) in Chengdu Intermediate Court on

August

18,

2014,

requesting the

three

defendants to stop the infringement actions and claim for compensatory damages.  Four hearings have been held since

October

2014.

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2

Micro (China) and Yunfeng Li reached and signed a settlement agreement on

December

29,

2016

and the case has been withdrawn. The matter is now closed.

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2

Micro (China) Co., Ltd. v. Legendsec Information Technology (Beijing) Inc., Beijing Haidian District People's Court, China.

The Company filed a copyright infringement suit against Legendsec Information Technology (Beijing) Inc. in Beijing Haidian District People's Court on

November

19,

2014,

requesting the defendant to stop the infringement actions and claim for compensatory damages. The

first

hearing was held on

March

16,

2015.

The

second

hearing was held on

April

22,

2015.

The

third

hearing was held on

May

19,

2015.

The Court made a judgment to reject the Company’s claim on

July

3,

2015.

The Company appealed to Beijing Intellectual Property Court on

July

14,

2015.

The

first

hearing of the

second

trial was held on

December

23,

2015.

The Court made a final judgment to reject the Company’s appeal and sustain the original judgment on

February

26,

2016.

The matter is now closed.

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2

Micro (China) Co., Ltd. v. Nanjing AnalogChipTech Semiconductor Co., Ltd.,et al., Nanjing Intermediate Court, China.

The Company filed a patent infringement suit against Nanjing AnalogChipTech Semiconductor Co., Ltd., and Nantong Minghui Power Tools Co., Ltd. in Nanjing Intermediate Court on

October

29,

2015,

requesting

two

defendants to stop the infringement action, destroy the infringing products and claim for compensatory damages. The

first

hearing was held on

January

18,

2016.

All parties reached and signed a settlement agreement on

January

18,

2016

and this case is now closed.

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2

Micro (China) Co., Ltd. v. Nanjing AnalogChipTech Semiconductor Co, Ltd.,et al., Nanjing Intermediate Court, China.

The Company filed a trade secret infringement suit against Xiaohu Tang and Nanjing AnalogChipTech Semiconductor Co., Ltd. in Nanjing Intermediate Court on

October

29,

2015,

requesting

two

defendants to stop the infringement action, destroy the infringing products and claim for compensatory damages. The

first

hearing was held on

January

11,

2016.

All parties reached and signed a settlement agreement on

January

18,

2016

and this case is now closed.

The Company received

$23,000,

$0,

and

$$75,000

litigation income in relation to litigation cases in China or the United States for the years ended

December

31,

2016,

2015,

and

2014,

respectively. The Company subsequently received

$19,000

litigation income in relation to litigation cases in China in

January

2017.

The Company, as a normal course of business, is a party to litigation matters, legal proceedings, and claims. These actions

may

be in various jurisdictions and

may

involve patent protection and/or infringement. While the results of such litigations and claims cannot be predicted with certainty, the final outcome of such matters is not expected to have a material adverse effect on its consolidated financial position or results of operations. No assurance can be given, however, that these matters will be resolved without the Company becoming obligated to make payments or to pay other costs to the opposing parties, with the potential for having an adverse effect on the Company’s financial position or its results of operations.

No

provision for any litigation has been provided as of

December

31,

2016

and

2015.