Intel doesn’t infringe two patents owned by closely held VLSI Technology LLC, according to the federal jury in Waco, Texas. The trial was held in the same courthouse where a different jury
This was the second of three trials in suits VLSI lodged against Intel over patents that until early 2019 were owned by Dutch chipmaker
In the most recent trial, VLSI was seeking $3 billion in damages, saying the
Intel denied using any of the inventions, saying its own engineers have spent decades developing the chips that are used in everything from laptops to military fighter planes. It also argued that the patents didn’t cover new ideas even two decades ago, when they were issued.
Intel said in a statement that it was pleased the jury “rejected VLSI’s meritless claims that Intel’s cutting-edge processors infringe expired patents on MP3 player technology.”
VLSI was seeking damages for a period beginning March 1, 2019, just before the suit was filed. One of the patents, issued in 2002, expired in November; while the other was issued in 2003 and expires in May, according to data compiled by Bloomberg Law.
VLSI was created in 2016 by the
A federal judge had initially tossed the antitrust case, but Apple and Intel
Intel said the cases show the need for legislation “to prevent such ‘litigation investors’ and their shell companies from using low-quality purchased patents to extract exorbitant damages from productive American businesses.”
VLSI has no products and its only potential revenue is its litigation against Intel. VLSI lawyer
“This was technology that had looked over the horizon, changed the way Intel designed their chips,” Chu told the jurors in closing arguments. The damages request “is a large number but it’s a large number because Intel is the dominant company selling this infringing product.”
The patents originated with
VLSI brought “unfair and unfounded claims that were created for litigation, and a $3 billion claim that was created for by a paid-for expert,” Lee said in closing arguments, calling the damages demand “objectively unreasonable.”
NXP isn’t a party to the case, though in the first trial Lee said that the chipmaker would receive a cut of any damage award. The Eindhoven, Netherlands-based company said it doesn’t comment on ongoing litigation as a matter of corporate policy.
During the trial, Intel witnesses highlighted the Santa Clara, California-based company’s long history in developing the chips that power devices that have transformed all aspects of society, and its efforts for the next generation of electronics.
The patents were the subject of litigation between SigmaTel and Chinese chipmaker Actions Semiconductor Co. in a dispute that
The case is VLSI Technology LLC. v. Intel Corp.,
(Updates with Intel comment in 6th and 11th paragraphs.)
--With assistance from
Elizabeth Wasserman, Renee Schoof
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