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Intel has been whacked with a $2.18 billion-dollar patent infringement verdict for violating two patents held by VLSI Applied science LLC. The judgment is roughly a third of Intel's internet income for Q4 2020, and it represents 1 of the largest patent judgments ever handed down — assuming information technology stands on appeal.

VLSI Technology LLC is non the VLSI Technology visitor you may remember every bit an IC manufacturer a few decades back. That VLSI Applied science was purchased by Philips and spun off as part of NXP. It appears that "VLSI Applied science LLC" is leveraging patents now held by NXP, every bit that company is besides receiving a share of the proceeds from this case.

Unlike the original VLSI Technology, VLSI Technology LLC has no products and does non comport R&D. It generates revenue (at least according to Intel) solely past suing companies for infringement on old patents and Intel is the latest company to be so ensnared. VLSI Engineering science LLC sued Intel for multiple counts of patent infringement, though the Bloomberg article doesn't specify which patents Intel was institute to be in violation of. Intel argued, unsuccessfully, that VLSI Technology LLC is naught but a patent troll.

The example was handled by Federal District Estimate Alan Albright, who in one case argued against vexatious patent litigation on behalf of Newegg and other tech companies. Albright took the demote only a few years ago, but he's transformed the West District of Texas into a veritable hotbed of patent litigation since so. More 800 patent cases were filed in the W District of Texas last year, eight times the number filed in 2018. This development is completely separate from the longstanding patent-friendly court that has existed in the East District of Texas. That venue nevertheless sees a great many patent cases filed, but the West District now eclipses it.

The jury in the VLSI instance did non discover Intel guilty of willful infringement, which would have increased the amercement past as much as 3x. Intel has stated that it intends to appeal. There are paywalled reports that the USPTO plant in favor of Intel on February four, 2021, and invalidated four of the claims VLSI made on the ground of prior art. It is non articulate if that finding had whatever bear upon on the resolution of this case or what bug Intel volition enhance on appeal. During the trial, Intel argued that the patents in question were either invalid on the footing of prior fine art or essentially meaningless and had never been used by anyone.

In that location's patently a lot of he-said/she-said here, and not many specific facts about the claims in question. If Intel really infringed on these patents, the award isn't crazy given how long the infringement has gone on. If it didn't, awards like this are just fuel on the patent troll burn.

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