Intel came out victorious in a notable legal case, as a U.S. appeals court overturned the $2.18 billion patent verdict previously given to VLSI Technology. This decision from the United States Court of Appeals for the Federal Circuit indicates a significant development as regards patent law.

VLSI is a patent holding company under the ownership of investment funds managed by Fortress Investment Group. But in the meantime, Abu Dhabi’s Mubadala Investment Co. is considering purchasing a huge share from Softbank Group Corp.

Intel Patent Case Victory

Notably, this legal saga between VLSI and Intel involves multiple lawsuits across various U.S. courts. VLSI accused Intel of disobeying several patents related to semiconductor technology.

In the previous trial in Waco, Texas, VLSI received $2.18 billion after the jury concluded that Intel’s microprocessor technology did not follow its Dutch chipmaker NXP Semiconductor rule.

Meanwhile, the recent decision by the Federal Circuit holds that the evidence about Intel’s violation of the rule, which already accounted for $675 million, was not enough. As a result, the appellate court reversed the 2021 jury verdict, which concluded that Intel violated a VLSI patent. 

Consequently, the case will undergo a fresh trial in Texas to determine the revised damages related to a separate VLSI patent violation by Intel. Currently, Intel has stated its satisfaction with the ruling.

The firm also revealed plans to argue in the upcoming damages trial that the VLSI patent holds minimal value.

In the meantime, representatives for VLSI have not made any comments about the court’s present decision. Notably, Intel is getting victory after successfully defending itself in other legal battles. One of them was a Waco jury trial in 2021, where the court negated VLSI’s demand for $3 billion in damages. 

Notably, in a separate case in Austin, Texas, a jury granted VLSI nearly $949 million from Intel last year. Besides that, both companies also agreed to dismiss another potential multi-billion-dollar case in Delaware. 

Even with all that, 2024 still holds a different trial for both parties in Northern California.

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