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Actions Semiconductor Co Ltd, a China-based fabless semiconductor company, said in a statement that it has settled all outstanding litigation worldwide with US rival SigmaTel Inc.

Under terms of the settlement agreement, all outstanding claims and counterclaims will be withdrawn and both companies have agreed to not pursue third party intellectual property infringements or new legal action against each other for three years.

The two Nasdaq-listed companies also entered into a cross-license patent agreement which will allow all of Actions' current and future products to be imported into the US market without restrictions.