Intel Wins Semiconductor Patent Infringement Lawsuit... Avoids KRW 2.8 Trillion Compensation Liability

U.S. semiconductor company Intel succeeded in overturning the original ruling in an appeal of a patent infringement lawsuit worth approximately 2.8 trillion won, thereby avoiding liability for damages, major foreign media reported on the 4th (local time).

According to reports, the U.S. Federal Court of Appeals overturned the original ruling that ordered Intel to pay $2.18 billion (about 2.8482 trillion won) in damages in the patent infringement lawsuit filed by VLSI Technology against Intel, and remanded the case back to the court.

Previously, the U.S. District Court for the Western District of Texas, which first heard the case, ruled in March 2021 that Intel had infringed two semiconductor manufacturing-related patents owned by VLSI Technology, ordering Intel to pay $1.5 billion and $675 million respectively.

However, the appellate court found that there was insufficient evidence that Intel infringed VLSI's rights regarding the patent for which damages were estimated at $675 million. For the other patent, the court acknowledged that Intel did infringe, but pointed out issues with the damage calculation, stating that a new trial was necessary. These patents were originally owned by Dutch semiconductor manufacturer NXP and were transferred to VLSI in 2019.

VLSI, a semiconductor company, has filed multiple lawsuits against Intel over other patents as well. The two parties have reached some settlements, but some lawsuits are still ongoing.

VLSI is owned by an investment fund of Fortress Investment Group, a subsidiary of Japan's SoftBank Group.