U.S. Patent Office Rules in Intel's Favor for $2.18 Billion VLSI Patents Case

Intel
(Image credit: Intel)

The U.S. Patent Trial and Appeal Board (PTAB) this week ruled in favor of Intel and invalidated one of VLSI's patents that is central to the $2.18 billion patent infringement verdict from 2021, reports Reuters. The significant ruling comes on the heels of the invalidation of another VLSI patent that was a part of the same verdict back in May. 

Back in 2021, a District Judge in Waco, Texas, sided with VLSI and awarded a $2.18 billion patent infringement payment: $1.5 billion for a SigmaTel-developed frequency management patent ('759'), and $675 million for a Freescale-originated memory voltage reduction method patent ('373'). Intel appealed the decision, but failed to overturn it in August, 2021, so Intel turned to the PTAB to invalidate both patents.

"We find [Intel] has demonstrated by a preponderance of evidence that the challenged claims are unpatentable," a ruling by the U.S. Patent Trial and Appeal Board reads.

The decisions by the Patent Trial and Appeal Board potentially vacate Intel from paying VLSI for allegedly infringing its 759 and 373 patents. Meanwhile, VLSI, which has engaged in numerous patent infringement cases against Intel, now has the right to appeal PTAB's decisions at the U.S. Court of Appeals for the Federal Circuit.  

Intel and VLSI have been engaged in extensive ongoing litigation in numerous courts within the U.S. and abroad. VLSI alleges that Intel has violated 19 patents initially filed by Freescale, SigmaTel, and NXP. While some of these claims have been rejected by jury decisions, some of these cases remain unresolved.  

Back in December, 2022, the two companies agreed to end their $4 billion patent dispute in Delaware. Yet, in November, 2022, a Texas federal jury ruled that Intel must compensate VLSI close to $949 million for violating its 7,242,552 patent, which covers a technique designed to mitigate issues caused by stress exerted on bond pads.

While it looks like Intel is winning its legal disputes with VLSI, the fight is not over yet.

Anton Shilov
Freelance News Writer

Anton Shilov is a Freelance News Writer at Tom’s Hardware US. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • InvalidError
    If the USPTO had people actually competent in the fields they are responsible for approving patents in, I bet 90+% of patents that are on records today would have been rejected for being too obvious.
    Reply
  • DougMcC
    InvalidError said:
    If the USPTO had people actually competent in the fields they are responsible for approving patents in, I bet 90+% of patents that are on records today would have been rejected for being too obvious.
    Honestly I have yet to see a patent that didn't seem obvious. Probably the whole system needs to be thrown out. Human creativity is just too great for such a first-mover system.
    Reply
  • gg83
    Down with patent trolls!
    Reply
  • gg83
    DougMcC said:
    Honestly I have yet to see a patent that didn't seem obvious. Probably the whole system needs to be thrown out. Human creativity is just too great for such a first-mover system.
    Only an AI overlord could keep up with the complexities of human civilization. As long as it programs itself in our favor. We are to the point where AI is advancing research. Almost to the point where only an advanced computer can design a more advanced computer.
    Reply
  • Megangel1
    <cynicism>
    And the winners are ......

    the lawyers

    the rest of us lose no matter which side wins as we end up paying for the lawyers though higher prices.

    </cynicism>
    Reply
  • bit_user
    Megangel1 said:
    <cynicism>
    And the winners are ......

    the lawyers

    the rest of us lose no matter which side wins as we end up paying for the lawyers though higher prices.
    </cynicism>
    Well, not really. First, patent trolls are suing for a lot more than their legal costs. Second, the more cases patent trolls win, the more incentive & resources they'll have to continue their activities. Patent trolls are most likely owned by a small number of already wealthy individuals, so they're essentially running an extortion racket on society to make themselves even richer. That's my cynical take.

    If there's an upside, it's that having IP laws and litigation should theoretically incentivize more innovation. However, the current administration of the laws and the way these legal battles play out are too much of a crap-shoot. With out the predictability of good enforcement, innovation turns into yet another business risk and that has the opposite effect than what we want.
    Reply
  • MoxNix
    The problem with patents is they were originally intended to protect the little guys but the rich have turned it into just another way to take everything from everyone who doesn't have the resources to fight them.
    Reply
  • TerryLaze
    Megangel1 said:
    <cynicism>
    And the winners are ......

    the lawyers

    the rest of us lose no matter which side wins as we end up paying for the lawyers though higher prices.

    </cynicism>
    If a company loses their patent they will have to either start paying for the license or invest in research to find another way to do the same thing (or buy IP) .
    So if a company loses we not only pay for the lawyers but for that as well.
    Reply
  • TerryLaze
    MoxNix said:
    The problem with patents is they were originally intended to protect the little guys
    Link or it didn't happen....
    Modern patents started in venice to protect the glass makers because that was one of the most lucrative business of the time.
    Reply
  • kjfatl
    TerryLaze said:
    Link or it didn't happen....
    Modern patents started in venice to protect the glass makers because that was one of the most lucrative business of the time.
    Where is the link? (I'm actually a bit curious about this).
    Reply