Intel Wins Crucial Jury Ruling in $3 Billion Patent Dispute with VLSI, Threatening Earlier Verdicts

This week, Intel achieved a significant victory in its ongoing patent dispute with VLSI Technology, convincing a Texas jury that Fortress Investment Group exerts control over VLSI. This ruling could potentially reverse Intel’s previous $3 billion in patent infringement payments to VLSI. According to Bloomberg, the central issue revolves around a patent licensing agreement Intel signed with Finjan in 2012. Intel contends that this agreement, which covers patents controlled by Finjan and affiliated entities, should extend to VLSI because Fortress oversees both companies. VLSI, a firm known for its aggressive patent litigation, had filed multiple lawsuits against Intel across various U.S. courts and international jurisdictions, alleging infringement of 19 patents originally owned by Freescale, SigmaTel, and NXP. In a notable 2021 case in Waco, Texas, a jury initially awarded VLSI $2.18 billion, but this verdict was later overturned by an appeals court, necessitating a retrial. A 2022 trial in Austin resulted in another substantial payout, with a jury awarding VLSI $949 million. Intel has been challenging this decision, citing the relevance of the 2012 license agreement. The recent trial, conducted in Austin and overseen by U.S. District Judge Alan Albright, focused on whether Fortress's control over both Finjan and VLSI means the 2012 agreement should protect Intel from VLSI’s claims. Intel argued that Fortress's control over both companies renders the earlier license applicable. VLSI, however, contended that it operates independently and is not bound by the agreement because it was established four years after the license was signed. The jury’s decision that Fortress does indeed own both Finjan and VLSI bolsters Intel’s position. This ruling allows Intel to reclaim the $3 billion paid in earlier verdicts, contingent on further legal proceedings. Intel and Apple have long accused VLSI of engaging in the unlawful accumulation of patents to extract licensing fees from actual CPU developers. Intel further alleged that VLSI’s opaque ownership structure allows its investors to profit from litigation while remaining anonymous to both the court and the public. At the time of the disputes, Fortress Investment Group was under the ownership of SoftBank, the same company that owns Arm. Since then, Abu Dhabi’s Mubadala Investment Company has acquired a controlling stake in Fortress. This latest development in the patent battle highlights the intricate nature of intellectual property law and the strategic maneuvers often employed by parties involved in such disputes. For Intel, the ruling not only offers a chance to recover significant financial losses but also strengthens its stance against what it perceives as abusive patent practices. As the legal saga continues, the tech industry will be closely watching to see the broader implications of this verdict on patent litigation and licensing agreements. To stay updated on the latest developments in this and other tech-related news, follow Tom’s Hardware on Google News. Make sure to click the "Follow" button to receive their news, analysis, and reviews directly in your feed.