Note 14 - Litigation	12 Months Ended
Dec. 31, 2016
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	1 4 . LITIGATION The Company is a party to actions and proceedings in the ordinary course of business, including potential litigation regarding its shareholders and its intellectual property, challenges to the enforceability or validity of its intellectual property, claims that the Company’s products infringe on the intellectual property rights of others, and employment matters. 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 potential claims. Silergy In December 2016, the Company settled a patent infringement lawsuit with Silergy Corp. and was awarded a total of $3.0 million pursuant to a settlement and license agreement. Under the agreement, the parties agreed to a mutual release of past claims and covenant not to sue provisions, and grant of certain patent licenses for future use. Based on their relative fair values, the Company allocated approximately $0.6 million to the settlement which was recorded as a credit to litigation expense in the Consolidated Statement of Operations for the year ended December 31, 2016. The remaining $2.4 million was allocated to the grant of the patent licenses for future use and will be recognized ratably over five years. O2 Micro In May 2012, the United States District Court for the Northern District of California (the “District Court”) 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 was in addition to the approximately $0.3 million in taxable costs that the District Court had earlier ordered O2 Micro to pay to the Company in connection with the same lawsuit. In October 2012, O2 Micro appealed the District Court’s judgment to the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”). In August 2013, the Federal Circuit affirmed O2 Micro’s liability for the full amount of the award. In September 2013, O2 Micro filed a petition for rehearing of that ruling, but the Federal Circuit denied O2 Micro’s petition for rehearing in October 2013. In November 2013, the Company received a cash payment of $9.5 million from O2 Micro. In January 2014, O2 Micro filed an appeal with the United States Supreme Court. Had O2 Micro been successful in obtaining a favorable ruling against the Company, the Company could have been liable to return a portion or all of the $9.5 million to O2 Micro. Accordingly, the Company recorded the $9.5 million as a current liability as of December 31, 2013. In March 2014, the United States Supreme Court declined to hear the case. As O2 Micro had no further legal avenues to appeal, the Company released the current liability of $9.5 million and recorded the award as a credit to litigation expense in the Consolidated Statement of Operations in the first quarter of 2014. In addition, the Company incurred additional legal fees of $0.5 million in connection with the final resolution of the lawsuit.

. LITIGATION

The Company is a party to actions and proceedings in the ordinary course of business, including potential litigation regarding its shareholders and its intellectual property, challenges to the enforceability or validity of its intellectual property, claims that the Company’s products infringe on the intellectual property rights of others, and employment matters. 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 potential claims.

Silergy

December

2016,

the Company settled a patent infringement lawsuit with Silergy Corp. and was awarded a total of

$3.0

million pursuant to a settlement and license agreement. Under the agreement, the parties agreed to a mutual release of past claims and covenant not to sue provisions, and grant of certain patent licenses for future use. Based on their relative fair values, the Company allocated approximately

$0.6

million to the settlement which was recorded as a credit to litigation expense in the Consolidated Statement of Operations for the year ended

December

31,

2016.

The remaining

$2.4

million was allocated to the grant of the patent licenses for future use and will be recognized ratably over

five

years.

Micro

May

2012,

the United States District Court for the Northern District of California (the “District Court”) issued an order finding

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 was in addition to the approximately

$0.3

million in taxable costs that the District Court had earlier ordered

Micro to pay to the Company in connection with the same lawsuit. In

October

2012,

Micro appealed the District Court’s judgment to the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”). In

August

2013,

the Federal Circuit affirmed

Micro’s liability for the full amount of the award. In

September

2013,

Micro filed a petition for rehearing of that ruling, but the Federal Circuit denied

Micro’s petition for rehearing in

October

2013.

November

2013,

the Company received a cash payment of

$9.5

million from

Micro. In

January

2014,

Micro filed an appeal with the United States Supreme Court. Had

Micro been successful in obtaining a favorable ruling against the Company, the Company could have been liable to return a portion or all of the

$9.5

million to

Micro. Accordingly, the Company recorded the

$9.5

million as a current liability as of

December

31,

2013.

March

2014,

the United States Supreme Court declined to hear the case. As

Micro had no further legal avenues to appeal, the Company released the current liability of

$9.5

million and recorded the award as a credit to litigation expense in the Consolidated Statement of Operations in the

first

quarter of

2014.

In addition, the Company incurred additional legal fees of

$0.5

million in connection with the final resolution of the lawsuit.