In a significant legal twist, a U.S. appeals court has nullified the staggering $2.18 billion patent-infringement ruling secured by VLSI Technology against Intel Corp, marking a pivotal moment in the annals of U.S. patent law.
The U.S. Court of Appeals for the Federal Circuit, in a decisive move, reversed the 2021 verdict where Intel was accused of infringing a VLSI patent. The court mandated a fresh trial in Texas to ascertain the extent of Intel’s liability for infringing a second VLSI patent.
VLSI, a patent holding company under the management of investment funds by Fortress Investment Group, did not provide an immediate response to the court’s decision. Meanwhile, Intel expressed contentment with the ruling, vowing to present arguments during the new damages trial asserting that VLSI’s patent holds minimal value.
This legal skirmish is part of a broader conflict, with VLSI launching multiple lawsuits against Intel in various U.S. jurisdictions, alleging infringement of several semiconductor technology patents.
The initial trial in Waco, Texas resulted in a staggering $2.18 billion award to VLSI, based on the jury’s finding that Intel microprocessors unlawfully used technology covered by patents acquired from Dutch chipmaker NXP Semiconductors. However, the Federal Circuit declared insufficient evidence for one of the patents, amounting to $675 million of the original verdict.
While affirming Intel’s infringement of another VLSI patent, the appeals court highlighted flaws in the damages analysis, warranting a new trial to determine the appropriate compensation. The initial jury had granted VLSI $1.5 billion in damages for the patent violation.
In the wake of this legal development, Intel’s stock experienced a more than 4% dip on Monday morning, mirroring a broader trend among major chipmakers.
The legal saga between Intel and VLSI continues, with the companies previously clashing in multiple trials resulting in varying outcomes. As Intel prevails in this particular appeal, the trajectory of their legal battles promises ongoing drama, with another trial scheduled in Northern California in 2024.
This turn of events signifies a crucial juncture in the intricate dance of patent disputes, leaving both technology giants and legal enthusiasts eagerly anticipating the next chapter in this unfolding narrative.
