Chip patents infringement: Texas jury orders Intel to pay $2.18 billion

On March 2, 2021, a Texas jury (US District Court for the Western District of Texas, Waco), has handed down a verdict ordering Intel Corporation to pay $2.18 billion as a result of the infringement of two patents held by the company VLSI Technology LLC. (full jury’s verdict form available here).

The jury’s verdict was given against Intel after losing a patent-infringement trial over technology related to computer microprocessors (chips).

The jury, through Questions 6, 7 and 8 of the verdict amounted a lump sum of $1.5 billion for the infringement of U.S. Patent No. 7,523,373 and $675 million for the infringement of U.S. patent No. 7,725,759.

VLSI Technology affirmed that Intel was “willfully blind” of the existence of the patents in the infringement. Interestingly, while the jury found Intel guilty of such violation, it denied the existence of a “willful” infringement from Intel (Question 4). In such case, District Judge Alan Albright would have been able to raise the amount up to three times of the amount set by the jury.

A compensation of $2.18 billion is a very considerable amount, given the fact that VLSI profits are not generated from the exploitation of the patent. If endorsed, such verdict will be one of the largest patent damages given in United States history.

Alessandro Gai

US District Court for the Western District of Texas, Waco Division, jury verdict of March 2, 2021, VLSI Technology LLC v. Intel Corp, Case No. 6:21-cv-00057-ADA.




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