Intel urges US appeals court docket to undo $2.18 bln patent verdict

Oct 5 (Reuters) – Judges at a U.S. appeals court docket in Washington signaled on Thursday that they might overturn a landmark $2.18 billion jury verdict towards Intel Corp (INTC.O) within the chipmaker’s sprawling patent struggle with VLSI Know-how.

Throughout arguments in Intel’s enchantment on the U.S. Courtroom of Appeals for the Federal Circuit, a three-judge panel questioned the methodology of a damages skilled’s testimony that helped result in one of many largest awards in U.S. patent legislation historical past.

The panel has not but issued a ruling.

Patent holding firm VLSI is owned by funding funds managed by SoftBank Group (9984.T) subsidiary Fortress Funding Group. VLSI has sued Intel in a number of U.S. courts, accusing it of violating its patent rights in semiconductor know-how.

A Waco, Texas jury awarded VLSI $2.18 billion in damages in 2021 within the first trial from the dispute. The jury discovered that know-how in Intel microprocessors infringed patents that VLSI had acquired from Dutch chipmaker NXP Semiconductors (NXPI.O).

Federal Circuit judges on Thursday took challenge with an skilled’s testimony that influenced the dimensions of the award.

It “appears to me fairly clear that your skilled relied on non-infringing merchandise and options” of Intel’s gadgets to calculate his damages estimate, U.S. Circuit Decide Timothy Dyk instructed VLSI lawyer Jeffrey Lamken.

Decide Richard Taranto echoed the priority throughout Intel lawyer Invoice Lee’s argument, and mentioned it was “virtually undisputed” that VLSI’s skilled selected the incorrect damages mannequin.

“Which may not be innocent error,” Taranto mentioned.

The panel additionally expressed issues concerning the authorized principle that led to a patent-infringement discovering that accounted for $675 million of the decision.

A U.S. Patent Workplace tribunal individually declared each patents invalid earlier this 12 months, which might additionally negate the decision if these selections are upheld on enchantment.

Intel defeated VLSI’s bid for greater than $3 billion in damages in one other Waco jury trial later in 2021. A jury in Austin, Texas mentioned VLSI was entitled to almost $949 million from Intel in a separate patent case final 12 months.

The businesses agreed to dismiss one other potential multi-billion-dollar case in Delaware final December. A trial in a VLSI lawsuit towards the chipmaker in Northern California is about to start subsequent 12 months.

The case is VLSI Know-how LLC v. Intel Corp, U.S. Courtroom of Appeals for the Federal Circuit, No. 22-1906.

For VLSI: Jeffrey Lamken of MoloLamken

For Intel: Invoice Lee of Wilmer Cutler Pickering Hale & Dorr

Learn extra:

Intel loses U.S. patent trial, ordered to pay $2.18 billion to VLSI Tech

Our Requirements: The Thomson Reuters Belief Ideas.