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Intel Wins Appeal Overturn

Intel Wins US Appeal to Overturn $2.18 Billion VLSI Patent Verdict: A Stunning Legal Victory

Lindokuhle Mkhize

Lindokuhle Mkhize

13 December 20233 min read

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Intel Wins Appeal

Intel recently triumphed in a significant legal victory by overturning a whopping $2.18 billion decision. The tech giant successfully reversed an appeal to set aside a $2.18 billion VLSI patent verdict with US courts. An appeal was brought against them from patent owner VLSI Technology involving patents originally belonging to Dutch chipmaker NXP Semiconductors.

Key takeaways

  • Intel successfully overturned a $2.18 billion patent verdict in its appeal, setting a precedent for stricter scrutiny of damages in future cases.
  • NXP Semiconductors was involved, and Intel is engaged with multiple other major tech companies over patent disputes.
  • The tech industry reacted to the legal victory with both relief and trepidation, recognizing the importance of intellectual property protection.

The appeals court decision

An appeals court ruling in favor of Intel has overturned a $2.18 billion patent infringement judgment, and the case will now be retried by a jury in Waco, Texas. This decision may have far-reaching implications for future cases involving large claims concerning patent violations since it sets an important precedent regarding how damages are calculated and awarded from infringement disputes.

Background of the case

VLSI Technology, a patent holding firm that acquired the two design patents that Intel was found to have infringed upon from NXP Semiconductors, recently won an enormous award of $2.18 billion for patent infringement concerning Intel microprocessors and semiconductor technology-related aspects in chip-making. 

The U.S. Patent Nos 7,523,373 and 7 522759 demonstrated how much Intel owes VLSI Tech due to their infractions. Highlighting just how necessary intellectual property rights are within the tech world when arguments arise between players involved.

Intel's defense strategy

Intel countered the $2.18 billion patent verdict obtained by VLSI Technology through a strategic defensive approach, wherein they questioned both the credibility of the patents and the severity of damages allocated to them. This plan proved highly successful for Intel when making their appeal due in part to Federal Circuit precedent relating to apportionment in such cases being employed here as well.

The Dutch chipmaker NXP Semiconductors was the original owner of certain patents that were later transferred to VLSI Technology. This caused disagreement over who controlled and owned this intellectual property, which led to a legal battle against Intel.

NXP acquired these patents in 2021 when they bought Freescale Semiconductor and then sold them to VSLI Technologies afterward. Emphasizing how important it is for tech firms to keep track of changing patent ownerships or be faced with possibly costly outcomes if problems arise from misunderstandings/disputes like this one did between Intel and these two companies.

Other ongoing patent cases against Intel

Intel is not unfamiliar with patent disputes, as the company currently has multiple other cases in progress. This includes various adversaries such as Qualcomm, Broadcom, and Apple. The fact that Intel is involved in so many legal disagreements alludes to how competitive the technology sector can be and what an essential role protecting intellectual property plays.

As Intel continues to navigate its way through these lawsuits, any judgment from their dispute against VLSI Technology could provide helpful guidelines for future litigation procedures, plus potential outcomes of similar suits involving this enterprise.

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Lindokuhle Mkhize, a skilled creative copywriter and content lead at Trademarkia, brings a wealth of experience in driving innovation and managing teams. With previous success in starting and growing the Innovation and Marketing department at her former creative agency, Lindokuhle boasts expertise in leadership and delivering compelling content. Based in South Africa, Lindokuhle's work focuses on key themes of creativity, effective communication, and strategic marketing.