Intel fails to persuade choose to overturn $2.18B damages over CPU patent infringements

Intel Headquarters

(Picture credit score: Intel)

Intel nonetheless owes $2.18 billion in damages to VLSI Expertise LLC after failing to compel a District Decide in Waco, Texas to overturn a earlier verdict and subject a brand new trial. Fortuitously for Intel, it could possibly afford such a large fee, although it might probably be on the hook for 5 occasions as a lot, relying on how different authorized battles go.

On the root of the kerfuffle are patent infringement claims introduced forth by VLSI, after coming into possession of varied know-how IP that have been beforehand owned by NXP Semiconductors, a Dutch chipmaking firm spun out of Philips in 2006. VLSI, an affiliate of Fortress Funding Group, doesn’t truly make or promote or any merchandise, however does personal some apparently profitable patents.

As detailed by Bloomberg, the 2 patents leading to a $2.18 billion damages award have modified palms a number of occasions through the years. They have been initially held by SigmaTel Inc., which was acquired by Freescale Semiconductor Inc. in 2008. Then seven years later, NXP purchased FreeScale. NXP is just not a part of the wave of lawsuits, however is about to obtain a portion of any damages VLSI is ready to acquire.

It is complicated chain of occasions, nevertheless it goes one thing like this: Philips acquired VLSI in 1999. Freescale purchased Sigmatel in 2008. NXP spun out of Philips in 2006. Freescale merged with NXP in 2015. VLSI spun out of NXP sooner or later, with key patents in hand, tracing all the best way again to Freescale and Sigmatel.

On this case, the 2 patents—numbers 7,523,373 and seven,725,559—should do with applied sciences aimed toward rising the pace and energy of processors, which Intel calls Velocity Shift know-how.

Again in April, a choose sided with VLSI, awarding it $1.5 billion for one of many patents and $675 million for the opposite. And now that judgement has been upheld, based on Reuters.

Intel plans to attraction. It factors out that this qualifies because the second-largest patent verdict by a jury, and that the following three largest ones have all been dismissed on attraction.

The chipmaker additionally beforehand stated these instances introduced on by VLSI spotlight a necessity for laws “to forestall such ‘litigation traders’ and their shell firms from utilizing low-quality bought patents to extract exorbitant damages from productive American companies.”

There’s some excellent news for Intel. It might have owed VLSI one other $3.1 billion over a few different patents, nevertheless it received that case in April of this 12 months. Barring an attraction, in fact.

VLSI has filed three separate lawsuits in opposition to Intel. In a previous submitting with the SEC, Intel revealed VLSI’s damages claims might be “as excessive as $7.1 billion.” And if including in potential ongoing royalties, attorneys’ charges, and different prices, the overall invoice might exceed $11 billion.

To this point, Intel is ‘solely’ obligated to pay $2.18 billion, pending an attraction. That’s nonetheless a large quantity, albeit lower than half as a lot Intel profited in its most up-to-date quarter ($5.1 billion, on income of $19.6 billion).

Paul Lilly

Paul has been enjoying PC video games and raking his knuckles on laptop {hardware} for the reason that Commodore 64. He doesn’t have any tattoos, however thinks it might be cool to get one which reads LOAD”*”,8,1. In his off time, he rides bikes and wrestles alligators (solely a type of is true).