Volkswagen, the German car manufacturer, is on the receiving end of a $1billion patent infringement claim filed by US semiconductor company Broadcom.
It has been reported that the basis of the claim is 18 patents registered by Broadcom which relate to semiconductors used by Volkswagen in their cars navigation and entertainment systems, amounting to an alleged infringement.
Volkswagen have responded to reports of such claim and released the following statement:
ÂVolkswagen has carried out a legal review of the claims and has taken the necessary steps to defend its interests,Â
If Broadcom can push forward successfully with their claims, it has also been reported that they are seeking to put a block on the production of Volkswagen models as well as Audi and Porsche brands which are owned by Volkswagen Group.
This is not the first time Broadcom have tried to ruffle some patent feathers as earlier this year, they made a claim against Toyota which was investigated by the US International Trade Commission.
Watch this space for any updates as to whether this case is a speed away success or will get a puncture early on.