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Intel Liable To Pay $949M For VLSI Patent Infringement

Benzinga · 11/16/2022 06:35
  • A federal jury in Texas said Intel Corp (NASDAQ:INTC) must pay VLSI Technology LLC $948.8 million for violating a VLSI patent for computer chips.
  • VLSI, a patent-holding company, is affiliated with the Softbank Group Corp (OTC:SFTBF) (OTC:SFTBY)-owned private equity firm Fortress Investment Group.
  • VLSI argued during the six-day trial that Intel's Cascade Lake and Skylake microprocessors infringed its patent covering improvements to data processing.
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  • An Intel spokesperson said the company "strongly disagrees" with the verdict and plans to appeal.
  • Last March, VLSI won a nearly $2.2 billion verdict from Intel in a separate Texas trial over different chip patents, which Intel has appealed
  • VLSI lost another related patent trial against Intel the following month. VLSI bought the patent in the latest trial from Dutch chipmaker NXP Semiconductors NV (NASDAQ:NXPI).
  • An attorney for VLSI said at trial that Intel's chips cause "millions and millions of infringements per second." The jury awarded the company the total amount of damages it requested.
  • A lawyer for Intel said during the trial that the company's engineers developed its innovations independently and that its modern microprocessors would not work with VLSI's outdated technology.
  • Two other patent cases brought by VLSI against Intel are still pending in Northern California and Delaware.
  • Intel held $22.6 billion in cash and equivalents as of October 1, 2022.
  • Price action: INTC shares closed higher by 1.19% at $30.71 on Tuesday.