4/19/2021
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`Intel Hit With $2.18B Jury Verdict In VLSI Patent Fight - Law360
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`Intel Hit With $2.18B Jury Verdict In VLSI Patent Fight
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`By Britain Eakin
`Law360 (March 2, 2021, 2:21 PM EST) -- A Western District of Texas jury delivered one of the largest patent
`infringement wins in history to VLSI Technology LLC on Tuesday, finding that Intel infringed all contested
`claims in two computer chip patents and building on a trend in recent years of enormous verdicts in patent
`cases.
`
`A Texas federal jury found on Tuesday that Intel infringed all contested claims in two computer chip patents,
`delivering one of the largest patent infringement wins in history to VLSI Technology LLC. (AP Photo/Ben Margot)
`
`The jury's $2.175 billion verdict arrived the day after closing arguments wrapped, with the jury finding that
`Intel infringed all of the contested claims in both patents. Intel is on the hook for $1.5 billion for literal
`infringement of U.S. Patent No. 7,523,373 and $675 million for infringing U.S. Patent No. 7,725,759 under
`the doctrine of equivalents.
`
`The jurors decided that Intel's infringement was not willful. Had they found that it was, U.S. District Judge
`Alan Albright could have tripled the $2.175 billion damages award.
`
`Michael Stolarski, CEO of VLSI Technology LLC, welcomed the news.
`
`"We are very pleased that the jury recognized the value of the innovations as reflected in the patents and
`are extremely happy with the jury verdict," he said in a statement.
`
`Intel spokesperson William Moss, meanwhile, told Law360 the company "strongly disagrees" with the
`verdict.
`
`"We intend to appeal and are confident that we will prevail," Moss said.
`
`Counsel for VLSI did not immediately return a request for comment.
`
`After the jury delivered its verdict, Judge Albright commended the attorneys for their professional conduct,
`saying every time he interacted with one of them, he was thankful former President Donald Trump
`appointed him to the federal bench in 2018. Since then, he's built his docket into the busiest patent docket
`in the country.
`
`He called himself "the luckiest person on the planet" to get to work with attorneys whose skill he said far
`exceeded his own as a trial lawyer.
`
`"The lawyering in this case was truly exceptional, and I appreciate it," Judge Albright said.
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`Intel Hit With $2.18B Jury Verdict In VLSI Patent Fight - Law360
`During closing arguments on Monday, VLSI Technology told the jury that evidence of infringement was
`crystal clear in nearly 1 billion Intel products, while Intel Corp. argued that VLSI failed to prove the patents
`are being used in any of its products. The arguments came after a nearly full day of witness testimony on
`damages and Intel's defense that the asserted patents are invalid, closing a six-day trial that was delayed
`by a week due to a winter storm.
`
`Intel attorney Joseph Mueller of WilmerHale told the jury during closing arguments that VLSI's damages
`request was "an outrageous demand." During the course of the trial, Intel tried to portray VLSI's patents
`as essentially worthless, telling the jury that no company has ever licensed them, they're not used in any
`products and they've been sold multiple times for small sums.
`
`VLSI, meanwhile, had argued that Intel profited tremendously from the patented technology.
`
`VLSI's April 2019 suit alleged that the tech giant has sold billions of computer chips since at least 2008 that
`lifted the patented energy-saving and speed-optimizing technology.
`
`The huge verdict follows a trend of high damages awards in patent trials over the past decade that have
`surpassed $500 million and in several cases, topped $1 billion. Tuesday's verdict is the second to surpass
`the $2 billion mark. However, many of those verdicts haven't survived and were either lowered, wiped
`out or settled.
`
`The dispute between Intel and VLSI, a unit of hedge fund Fortress Investment Group, is just one part of a
`sprawling battle between the companies. VLSI has asserted at least 21 patents against Intel in various
`venues throughout the country, which Intel has said is part of an anti-competitive patent aggregation
`scheme Fortress is backing.
`
`According to court filings, the parties will reconvene in Judge Albright's courtroom on April 12 for another
`jury trial in another potentially billion-dollar case in which VLSI alleges that Intel infringed two additional
`patents. And they will meet yet again in June for another go-round with three more VLSI patents at issue in
`that case.
`
`The patents-in-suit are U.S. Patent Nos. 7,523,373 and 7,725,759.
`
`VLSI is represented by Morgan Chu, Benjamin Hattenbach, Alan Heinrich, Iian Jablon, Christopher
`Abernethy, Ian Washburn, Elizabeth Tuan, Adina Stohl, Amy Proctor, Dominik Slusarczyk, Charlotte Wen,
`Brian Weissenberg, Benjamin Manzin-Monnin, Jordan Nafekh, Michael Strub Jr. and Babak Redjaian of Irell &
`Manella LLP, Craig Cherry of Haley & Olson PC and Andy Tindel, J. Mark Mann and G. Blake Thompson of
`Mann Tindel Thompson.
`
`Intel is represented by William Lee, Louis Tompros, Kate Saxton, Gregory Lantier and Amanda Major of
`WilmerHale, J. Stephen Ravel and Kelly Ransom of Kelly Hart & Hallman LLC and James Wren of Baylor Law
`School.
`
`The case is VLSI Technology LLC v. Intel Corp., case number 6:21-cv-00057, in the U.S. District Court for
`the Western District of Texas.
`
`--Editing by Bruce Goldman.
`
`Update: This story has been updated with additional counsel information for and comment from VLSI.
`
`Correction: An earlier version of this story misspelled the names of VLSI attorney G. Blake Thompson and
`Intel attorney Kate Saxton. The errors have been corrected.
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