“[T]he Federal Circuit famous that VLSI made a ‘readily identifiable error’ in calculating velocity enhancements and power-savings advantages utilizing voltage states that don’t carry out the infringing perform.”
On December 4, the U.S. Court docket of Appeals for the Federal Circuit (CAFC) issued a precedential ruling within the ongoing patent battle between pc chip patent proprietor VLSI and main chipmaker Intel Corp. Whereas the court docket affirmed the infringement findings underpinning the majority of VLSI’s $2.175 billion jury verdict awarded again in March 2021, the panel ordered a retrial of damages award for one in all two asserted patents and dismissed the doctrine of equivalents infringement discovering for the opposite patent. The Federal Circuit additionally discovered that the district court docket abused its discretion by denying Intel’s movement for depart so as to add a license protection to its case.
The Western District of Texas jury verdict for VLSI awarded $1.5 billion in damages for Intel’s infringement of U.S. Patent No. 7523373, Minimal Reminiscence Working Voltage Methodand $675 million for Intel’s infringement of U.S. Patent No. 7725759, System and Technique of Managing Clock Pace in an Digital Machine. The jury discovered literal infringement of the ‘373 patent by Intel’s Haswell and Broadwell microprocessors, which retailer processing core state data previous to coming into sleep mode. The jury discovered the ‘759 patent infringed below the doctrine of equivalents by Intel’s Lake processors that management core frequency primarily based on a workload sign despatched to the ability management unit (PCU). U.S. District Decide Alan Albright denied Intel’s post-trial motions difficult the infringement findings and damages awards.
‘Design Selection’ Testimony Did Not Set up Insubstantial Technical Variations
The CAFC rejected each arguments raised by Intel to overturn the infringement ruling concerning the ‘373 patent, discovering ample document testimony by VLSI’s knowledgeable to assist that the minimal voltage at which Intel’s processors might proceed to retailer core state data fell inside VLSI’s patent claims. The court docket additional famous {that a} comparability of core voltage charges introduced by Intel’s knowledgeable might freely be discredited by the jury because the voltage’s in contrast by Intel’s knowledgeable had been measured below completely different essential situations. As for Intel’s argument that the claims of the ‘373 patent requires a falling previous a minimal voltage as a causal set off for switching voltage sources, the Federal Circuit discovered that Intel requested no declare building on this level within the district court docket.
The Federal Circuit, nevertheless, did discover advantage with Intel’s argument that VLSI’s proof of equivalency was legally inadequate. Citing a number of appellate and U.S. Supreme Court docket rulings on the doctrine of equivalency, particularly Warner-Jenkinson Firm, Inc. v. Hilton Davis Chemical Firm (1996), the Federal Circuit famous three limitations on the doctrine: proof of equivalency have to be supplied for every limitation as an alternative of the declare as a complete; alleged equivalents should have considerably the identical perform, means and results of the claimed know-how; and the patent proprietor should present linking arguments with particularized testimony on the insubstantiality of the variations between the claimed know-how and the infringing equal.
Whereas VLSI’s proof of equivalency was limitation-specific, it didn’t present {that a} specified core together with a core-specific software program module carried out considerably the identical perform, in considerably the identical means, attaining considerably the identical consequence because the claimed “first grasp system” offering requests to alter clock frequency. Throughout oral arguments within the current enchantment, VLSI’s knowledgeable witness expressed that any distinction between the equal core and software program module and the claimed first grasp system was a easy design selection made by an engineer on a schematic drawing. To the Federal Circuit, nevertheless, this didn’t meaningfully handle whether or not the request capabilities and each the receipt and output capabilities had been bodily separated as required by the claims. VLSI’s knowledgeable testimony was additional weakened by Intel’s proof that the microprocessor’s PCU and never specified cores for making frequency determinations primarily based on workload data.
Use of Non-Infringing Voltage States in Damages Calculation Results in New Trial
Intel’s arguments that VLSI employed a flawed damages methodology additionally led to vacatur of the $1.5 billion damages award for a brand new retrial. At trial, VLSI’s damages concept adopted a hypothetical negotiation method primarily based upon the incremental worth of the claimed know-how over non-infringing options. On enchantment, the Federal Circuit famous that VLSI made a “readily identifiable error” in calculating velocity enhancements and power-savings advantages utilizing voltage states that don’t carry out the infringing perform.
The appellate court docket didn’t handle Intel’s argument that VLSI launched non-comparable licenses involving costs for gross sales of sports activities groups that the jury could have thought of throughout damages. Nonetheless, the court docket identified that VLSI’s knowledgeable supplied that knowledge in response to cross-examination by Intel in a line of questioning to which VLSI objected. The Federal Circuit additionally famous with out so ruling that Intel didn’t persuasively present that VLSI’s damages methodology was improper as an alternative of misapplied.
Lastly, the Federal Circuit concluded that Decide Albright abused his discretion in denying Intel’s movement so as to add a license protection primarily based on a July 2020 acquisition of Finjan Inc. by Fortress Funding Group, which additionally owned VLSI. In accordance with Intel, this acquisition triggered provisions of a 2012 license settlement between Intel and Finjan granting Intel a license to observe applied sciences patented by Finjan associates below widespread management. The Federal Circuit discovered that Intel’s solely delay between the Finjan acquisition and its movement was brought on by due diligence required by the license settlement. Additional, Intel’s movement requested that the license protection be bifurcated and stayed pending decision of different points, main the Federal Circuit to seek out little threat of prejudice to VLSI.
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