Intel Ordered to Pay $2.2 Billion in Patent Infringement Case


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Intel has been whacked with a $two.18 billion-greenback patent infringement verdict for violating two patents held by VLSI Technologies LLC. The judgment is around a third of Intel’s net profits for This autumn 2020, and it represents just one of the greatest patent judgments at any time handed down — assuming it stands on charm.

VLSI Technology LLC is not the VLSI Technologies company you may well don’t forget as an IC maker a several many years back. That VLSI Engineering was procured by Philips and spun off as portion of NXP. It seems that “VLSI Technology LLC” is leveraging patents now held by NXP, as that firm is also receiving a share of the proceeds from this situation.

Not like the primary VLSI Technology, VLSI Technologies LLC has no goods and does not perform R&D. It generates revenue (at minimum in accordance to Intel) entirely by suing businesses for infringement on previous patents and Intel is the most up-to-date enterprise to be so ensnared. VLSI Know-how LLC sued Intel for several counts of patent infringement, nevertheless the Bloomberg post doesn’t specify which patents Intel was uncovered to be in violation of. Intel argued, unsuccessfully, that VLSI Technological innovation LLC is nothing at all but a patent troll.

The circumstance was taken care of by Federal District Choose Alan Albright, who the moment argued from vexatious patent litigation on behalf of Newegg and other tech companies. Albright took the bench only a number of a long time in the past, but he’s remodeled the West District of Texas into a veritable hotbed of patent litigation due to the fact then. Additional than 800 patent circumstances had been filed in the West District of Texas previous year, 8 occasions the variety submitted in 2018. This progress is entirely separate from the longstanding patent-welcoming court docket that has existed in the East District of Texas. That location continue to sees a fantastic lots of patent conditions filed, but the West District now eclipses it.

The jury in the VLSI situation did not come across Intel guilty of willful infringement, which would have enhanced the damages by as significantly as 3x. Intel has mentioned that it intends to enchantment. There are paywalled reviews that the USPTO identified in favor of Intel on February four, 2021, and invalidated four of the claims VLSI designed on the foundation of prior artwork. It is not obvious if that getting experienced any effects on the resolution of this situation or what concerns Intel will elevate on attractiveness. Through the trial, Intel argued that the patents in issue had been possibly invalid on the basis of prior art or fundamentally meaningless and experienced in no way been utilized by any person.

There is certainly a large amount of he-said/she-explained here, and not numerous certain specifics about the promises in question. If Intel actually infringed on these patents, the award is not ridiculous supplied how lengthy the infringement has absent on. If it did not, awards like this are just fuel on the patent troll hearth.

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