Intel Overturns $2.18 Billion Fine in Patent Dispute with VLSI Technology

VLSI, a company established in 2016 by SoftBank’s hedge fund Fortress, has been amassing patents and seeking compensation from major technology firms for patent infringements. Previously, VLSI initiated several patent infringement lawsuits against Intel in various states across the United States, leading to multiple legal confrontations. In 2021, a federal court jury in Waco, Texas, delivered a verdict, ordering Intel to pay $2.18 billion in damages to VLSI for infringing upon two other patents.

According to a report by Wccftech, the United States Court of Appeals for the Federal Circuit overturned the 2021 verdict of a Texas federal court jury. The appellate court rejected VLSI’s claim for $2.18 billion in damages against Intel, remanding the case for retrial. The court found that the evidence for one of the patents was insufficient to determine infringement, and although infringement was found for the other patent, the method used to determine the verdict was incorrect.

Months before this development, the United States Patent and Trademark Office (USPTO) had declared one of the patents involved in this $2.18 billion infringement verdict to be invalid. The Patent Trial and Appeal Board (PTAB), a division of the USPTO, ruled in favor of Intel, stating that a substantial amount of evidence indicated that the patent claims questioned by VLSI were not recognized.

Intel and VLSI have been embroiled in multiple lawsuits in the United States and other regions. VLSI accused 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, resulting in a $948.8 million compensation payment to VLSI, and concluded a $4 billion patent dispute in Delaware involving five CPU patents.