Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens for the delivery of clues on the way! On June 26, CTOnews.com, new progress has been made in the intellectual property dispute between Godson and Shanghai Core Co., Ltd. On the evening of June 25, Godson announced the latest arbitration results of its dispute with Shanghai SMIC over the MIPS (an instruction system) technology licensing contract. Six of the seven arbitration claims put forward by the core were rejected and one was determined to be an outstanding matter.

In response to item 5, the award finds that the transfer of the MIPS technology license contract signed by MIPS and Godson in 2011 (referred to as the "2011 Agreement") to the first applicant is valid, and the applicant is entitled to the royalties payable but not yet paid by Godson for the use of MIPS technology from February 7, 2017, as well as the corresponding deferred payment fees calculated in accordance with the contract. At the same time, the award states that, according to the findings of the arbitral tribunal, Godson has not made a mistake and caused no damage, what it should do is to pay unpaid royalties and an appropriate amount of deferred payment fees.

CTOnews.com noted that the dispute dates back to 2011, when it was revealed that in February 2021, Prestige Century Investments Limited (the "first applicant") and CIP United Company Limited (Shanghai Core Intelligent Technology Co., Ltd.) (the "second applicant") filed an arbitration with the Hong Kong International Arbitration Center (HKIAC) over the MIPS technology licensing contract dispute with Godson Zhongke Technology Co., Ltd.

The core has put forward seven arbitration claims. In the arbitration, the company proposed that Godson violated the technology license contract with MIPS Tech and LLC, which existed: 1) used MIPS technology outside the scope of the technology license agreement; 2) the product made unauthorized modifications and changes to the MIPS architecture; 3) continued to use the licensed technology after the technology license agreement expired; 4) did not return confidential information; 5) understated royalties; 6) re-licensed the technology to other parties without consent. 7) divulge confidential information.

With regard to the impact of this case on the company's technical level, Longxin Zhongke said that the company's strategic goal is to build an independent ecosystem independent of Wintel and AA ecology, and the main core technologies are independent research and development.

Longxin Zhongke chose MIPS instruction system at the initial stage of research and development, mainly because the MIPS instruction system has a relatively high degree of openness. Longxin Zhongke has obtained the authorization of MIPS instruction system from MIPS, but all the CPU IP cores developed by Loongson Zhongke are independently developed.

Godson Zhongke has issued Godson independent instruction system LoongArch in 2020 and has successively launched independent intellectual property chip products based on LoongArch. LoongArch does not contain the content of the MIPS instruction system, nor does it require any license from MIPS.

According to the normal replacement plan previously announced by Godson, the company is expected to account for about 70 per cent and 90 per cent of sales unrelated to the MIPS instruction system in 2022 and 2023, respectively, and commercial products based on the MIPS instruction system will no longer be sold around 2024.

Regarding the arbitration result, Longxin Zhongke also said that all the newly developed CPU products after 2020 are based on the independent instruction system LoongArch. The company's follow-up product sales are mainly non-MIPS instruction system-related products. This arbitration will not have a significant adverse impact on the company's business.

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