TAIPEI -(Dow Jones)- Chunghwa Telecom Co. (NYSE:CHT) (CHT) said Wednesday that GigaMedia Ltd. (NASDAQ-NMS:GIGM) (GIGM), a Taipei-based online entertainment provider, sued the company for patent infringement and is seeking NT$500 million in compensation.

Chunghwa Telecom (NYSE:CHT) , Taiwan's largest telecom services provider by revenue, said in a statement that it is studying the lawsuit.

Chunghwa Telecom (NYSE:CHT) had earlier commissioned China Industrial & Commercial Research Institute to study the case. The study suggested the company's service doesn't infringe on GigaMedia's (NASDAQ-NMS:GIGM) patent, Chunghwa said, without specifying the type of patent held by GigaMedia (NASDAQ-NMS:GIGM) .

GigaMedia (NASDAQ-NMS:GIGM) officials weren't immediately available for comment.

-By Jessie Ho, Dow Jones Newswires; 88622 502-2557; jessie.ho@dowjones.com

    (END) Dow Jones Newswires   06-18-08 0736   Copyright (c) 2008 Dow Jones & Company, Inc.