INTEL to Compensate VLSI Technology for Patent Infringement

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2021-04-09

INTEL to Compensate VLSI Technology for Patent Infringement

The jury has ordered in a Texas court that Intel, one of the most important processor manufacturers, will pay a 2.18-billion-dollar penalty to VLSI Technology LLC for 2 patent infringements. According to the news, Intel will pay $ 1.5 billion compensation for the infringement of the first patent and $ 675 million for the infringement of the second patent.

Intel shares fell 2.6% after the decision in the case was shared with the public. The patents in question focus on the management of varying voltage and clock frequencies to save power in processors. Freescale Semiconductor Inc. got the first patent in 2012 and SigmaTel Inc got the second one in 2010. As a result of these developments, Freescale acquired Sigmatel and the two patents became in the hands of a single company.

In 2015, Freescale was acquired by NXP, which was founded as a subsidiary of Philips and split from Philips in 2006. In 2019, NXP transferred the patents to VLSI Technology LLC, which is another company acquired by NXP. Subsequently, VLSI Technology sued Intel for patent infringement. Please don't forget that VLSI Technology was not a very active company until 2019. Michael Stolarskii, CEO of VLSI Technology, said that the jury recognized the value of innovation in patents and was extremely pleased with the jury's decision.