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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 1, 1996.
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): OCTOBER 22, 1996
DSP GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
0-23006 94-2683643
(Commission File Number) (I.R.S. Employer Identification No.)
3120 SCOTT BOULEVARD, SANTA CLARA, CA 95054
(Address of Principal Executive Offices) (Zip Code)
408/986-4300
(Registrant's Telephone Number, Including Area Code)
With a copy to:
Bruce Alan Mann, Esq.
Morrison & Foerster LLP
345 California Street
San Francisco, CA 94104
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ITEM 5. OTHER EVENTS.
DSP Group, Inc. (the "Company") announced the settlement of the
lawsuit between the Company and Rockwell International Corporation
("Rockwell") and the purchase of a license by Rockwell for three versions of
the Company's TrueSpeech speech technology in a press release dated
October 22, 1996. The litigation had been pending since February 1995 in
Superior Court of Santa Clara County, California.
The Company had alleged unfair competition, violations of state law
and an attempt by Rockwell to unfairly and illegally influence the DSVD
Consortium, a group of companies formed to select a speech compression
technology that enables modems to transmit computer data and digital voice
simultaneously, in the selection of speech compression technology. A
preliminary injunction had been issued by the court in March 1995 enjoining
Rockwell from granting royalty-free licenses of its speech compression product
during the pendency of the action or until further order of the court.
Rockwell had appealed from the issuance of the preliminary injunction and such
appeal remained pending.
Pursuant to the Settlement Agreement, License Agreement and Mutual
Release, dated as of October 22, 1996 (the "Agreement"), between the Company
and Rockwell, the Company will realize income in an amount equal to
$4,400,000, which amount is net of the Company's legal expenses and costs
associated with the license, for the resolution of all pending legal claims
and the purchase of a license for three versions of the Company's TrueSpeech
technology, TrueSpeech 8.5, TrueSpeech 6.3 and TrueSpeech G.723.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DSP GROUP, INC.
Date: October 31, 1996 By: /s/ Avi Basher
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Avi Basher
Vice President of Finance and
Chief Financial Officer
