Intel convinced the USPTO tribunal that the $1.5 billion patent was invalid

VLSI, a company established under the SoftBank hedge fund, Fortress, in 2016, amasses patents and seeks compensation for patent infringement from major tech companies. VLSI had previously instigated numerous patent infringement lawsuits against Intel in various states across the United States.

As per reports from Reuters, this week, the United States Patent and Trademark Office (USPTO) declared one of VLSI’s patents void. This concerns the crux of a $2.18 billion patent infringement ruling between Intel and VLSI in 2021. Last month, another of VLSI’s patents was also invalidated.

The USPTO’s Patent Trial and Appeal Board (PTAB) issued a ruling in Intel’s favor, stating, “We found ample evidence indicating that the contested patent claim is not recognized.” This decision may annul the compensation Intel has to pay to VLSI for alleged infringement of its 759 and 373 patents, though VLSI retains the right to appeal this decision at the United States Court of Appeals for the Federal Circuit (CAFC).

Numerous lawsuits have taken place in multiple courts across the United States and other regions between Intel and VLSI, with the latter accusing Intel of infringing upon 19 patents originally filed by SigmaTel, Freescale, and NXP. Some of these claims have been dismissed, while others remain unresolved. Last year, Intel lost a lawsuit in Texas, necessitating payment of $948 million to VLSI. Additionally, a $4 billion patent dispute involving five CPU patents in Delaware came to a close.