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Note 7 - Litigation
9 Months Ended
Sep. 30, 2012
Legal Matters and Contingencies [Text Block]

7. Litigation


The Company and certain of its subsidiaries are parties to actions and proceedings incident to the Company's business in the ordinary course of business, including litigation regarding its shareholders, a former employee and its intellectual property, challenges to the enforceability or validity of its intellectual property and claims that the Company's products infringe on the intellectual property rights of others. These proceedings often involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources to prosecute and defend. The Company defends itself vigorously against any such claims.


O2 Micro


On May 3, 2012, the United States District Court for the Northern District of California issued an order finding O2 Micro International, Ltd. (“O2 Micro”) liable for approximately $9.1 million in attorneys' fees and non-taxable costs, plus interest, in connection with the patent litigation that the Company won in 2010.  This award is in addition to the approximately $0.3 million in taxable costs that the Court had earlier ordered O2 Micro to pay to the Company in connection with the same lawsuit. The Court then entered judgment for the Company. O2 Micro filed an appeal against the judgment.   


Silergy


In December 2011, the Company entered into a settlement and license agreement with Silergy Corp and Silergy Technologies (“Silergy”) for infringement of the Company's patent whereby the Company will receive a total of $2 million which will be paid in equal installments of $0.3 million in each quarter of 2012 and the remainder will be paid in two equal installments in first two quarters of 2013. For the three and nine months ended September 30, 2012, the Company received the $0.3 million and $0.9 million payments, respectively, which were recorded as credits to litigation expense (benefit) in the Condensed Consolidated Statements of Operations.


Linear


On August 12, 2012, the United States Court of Appeal for the Federal Circuit issued an order affirming the judgment issued by the United States District Court of Delaware finding Linear Technology Corporation (“Linear”) liable for approximately $2.3 million in attorneys' fees and non-taxable costs, plus interest, in connection with the litigation regarding a contract dispute that the Company won in 2011The Company is seeking reimbursement of additional attorney fees in the amount of $0.2 million in connection with the cost of defending the appeal. As of September 30, 2012, the Company did not record this as income as the cash was not received.