Chinese fabless semiconductor company Actions Semiconductor (ACTS) says it has settled all outstanding litigation worldwide with SigmaTel (SGTL).

"We are pleased to have reached a mutually beneficial agreement that advances the long-term interests of both companies," said Nan-Horng Yeh, CEO of Actions Semiconductor. "The agreement lays the groundwork for fair competition and validates the strength of our intellectual property portfolio."

Under terms of the settlement agreement, all outstanding claims and counterclaims in the lawsuits in which the two companies have been engaged will be dismissed with prejudice. Both companies also agreed to not pursue possible third party IP infringements or new legal actions against each other and their respective customers for three years.

Additionally, Actions and SigmaTel entered into a comprehensive cross-license agreement covering patents owned or controlled by either party or its subsidiaries. Consequently, all of Actions' current and future products may now be imported into the U.S. market without restrictions.