Intel infringed two patents owned by closely held VLSI, the jury in Waco, Texas, said Tuesday. The jury found $1.5 billion for infringement of one patent and $675 million for infringement of the second. The jury rejected Intel’s denial of infringing either of the patents and its argument that one patent was invalid because it claimed to cover work done by Intel engineers.
The patents had been owned by Dutch chipmaker NXP Semiconductors Inc., which would get a cut of any damage award, Intel lawyer
VLSI “took two patents off the shelf that hadn’t been used for 10 years and said, ‘We’d like $2 billion,”’ Lee told the jury. The “outrageous” demand by VLSI “would tax the true innovators.”
He had argued that VLSI was entitled to no more than $2.2 million.
“Intel strongly disagrees with today’s jury verdict,” the company said in a statement. “We intend to appeal and are confident that we will prevail.”
Intel fell 2.6% to $61.24 in New York trading. The stock is up 23% since the beginning of the year.
One of the patents was originally issued in 2012 to
Federal law doesn’t require someone to know of a patent to be found to have infringed it, and Intel purposely didn’t look to see if it was using someone else’s inventions, he said. He accused the Santa Clara, California-based company of “willful blindness.”
The jury said there was no willful infringement. A finding otherwise would have enabled District Court Judge
“We are very pleased that the jury recognized the value of the innovations as reflected in the patents and are extremely happy with the jury verdict,” Michael Stolarski, chief executive of VLSI, said in an e-mailed statement.
Officials with NXP couldn’t immediately be reached for comment.
The damage request isn’t so high when the billions of chips sold by Intel are taken into account, Chu said. Intel
“Operating companies are going to be disturbed by not only the size of the award but also the damages theory,” said
The damage award is about
The verdict is smaller than the $2.5 billion verdict won by
The case is
Intel had sought to postpone the case because of the pandemic, but was
The case is VLSI Technology LLC v. Intel Corp.,
(Updates with VLSI comment in 12th paragraph. An earlier version corrected the spelling of law firm name in eighth paragraph.)
--With assistance from
To contact the editors responsible for this story:
© 2021 Bloomberg L.P. All rights reserved. Used with permission.
To read more articles log in.