In a development, within the technology industry Intel Corp (INTC.O) has achieved an outcome in its appeal against VLSI Technology sucessfully overturning a historic $2.18 billion verdict for patent infringement. The U.S. Court of Appeals for the Federal Circuit made this decision on Monday, reversing the jury’s 2021 verdict, which has previously found Intel guilty of infringing one of VSLI patents.
As a result of this ruling, the case will be retired in Texas to determine the amount that Intel may owe for infringing upon another VLSI patent. VLSI, which is a patent holing company owned by investment funds managed by Fortress Investment Group, has filed lawsuits against Intel across U.S. Courts alleging the infringement of several semiconductor technology patents.
During a year’s of trial in Waco, Texas, a jury awarded VLSI $12.8 billion after determining that Intel’s microprocessors had infringed upon patents acquired by VLSI from Dutch chipmaker NXP Semiconductors (NXPI.O).
However, on December 4, 2023, the Federal Circuit ruled that there was evidence to support the jury’s findings regarding Intel’s infringement of one of the two patents under consideration. It is worth that this particular patent accounted for $675 million of the verdict.
While confirming that Intel did indeed infringe another VLSI patent that appeals court emphasized concerns with respect, to the damages analysis. Deemed it necessary to conduct a trial in order to determine an appropriate award,
Intel’s stock experienced a decline of, that 4% on December 4, 2023 in response to the news. Other major chipmakers also saw reductions in their stock prices. Despite this setback Intel sucessfully prevented VLSi from obtaining over $3 billion in damages during another Waco jury trial in 2021. Additionally, a separate jury in Austin, Texas, ruled that VLSI should receive $949 million form Intel in a patent case last year.
Looking forward, both companies have agreed to dismiss another billion-dolar case hat was pending in Delaware. A trial is scheduled to take place in Northern California this year.