Intel to appeal jury verdict awarding $2.1B to VLSI in patent case

Intel plans to appeal a jury's decision in a patent infringement case that exposes Intel to damages of $2.1 billion. Intel faced a well-known court opponent: VLSI Technology LLC. (Getty Images)

A federal jury ruled on Tuesday that Intel infringed on two computer chip patents in a case brought by VLSI Technology. Intel faces damages of $2.1 billion, one of the largest in such cases, should the case be upheld on appeal.

Intel does plan to appeal, a spokesman said via email. “Intel strongly disagrees with today’s jury verdict,” said spokesman William Moss. “We intend to appeal and are confident that we will prevail.”

The damages are the sum of $1.5 billion for infringing on one patent and $675 million for the second patent under what is known as the doctrine of equivalents.

 The case was heard in U.S. District Court for the western district of Texas, and the verdict was delivered one day after closing arguments wrapped up. The case number is 6:21-cv-00057 and the patents involved are 7,523,373 and 7,725,759.

The patents are related to data processing system technology that VLSI alleged that Intel used in certain processors.  There are other related lawsuits over six other patents with some trials still scheduled for the same court.

Intel has also challenged VLSI patents with the Patent Trial and Appeal board, while Intel and Apple previously filed an antitrust suit against VLSI which noted that VLSI was seeking billions in damages across several patent lawsuits.

VLSI is an affiliate of Fortress Investment Group.  Intel and VLSI have faced each other in courts in Texas, Delaware and California.

The trial was overseen by Judge Alan Albright and was heard face-to-face with six feet distancing rules for jurors, who were given the option of wearing face shields or N-95 masks. A plexiglass barrier was positioned in front of witnesses. Trial participants also had temperature checks at the door.

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