Intel owes $162 mln more after losing multibillion-dollar VLSI verdict, judge rules

(Reuters) - Intel Corp owes $162 million in interest to VLSI Technology LLC for infringing its patents for nearly a decade, a Texas federal judge said in orders made public Tuesday, adding to a jury's $2.1 billion verdict against the company last year.

Intel owes interest from when its computer chips first infringed VLSI's patents in 2013 through the court's final judgment in April, U.S. District Judge Alan Albright said. He rejected the chipmaker's argument that VLSI was not entitled to interest because it does not produce or sell goods using its patented technology.

The newly unsealed orders also revealed Albright's reasoning for rejecting Intel's requests to overturn or reduce the March 2021 verdict, including the company's argument that VLSI engaged in an improper litigation scheme with backing from Softbank-owned private equity firm Fortress Investment Group LLC.

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An Intel spokesperson said the company planned to appeal, and called the case "one example of many that shows that the U.S. patent system is in urgent need of reform."

An attorney for VLSI did not immediately respond to a request for comment.

Intel had argued that VLSI's relationship with Fortress allowed it to keep filing lawsuits regardless of their merit "until either Intel capitulates or some jury awards an oversized verdict." But Albright said that "litigious business strategies alone" did not justify overturning the verdict.

Intel also argued that VLSI had improperly shifted its infringement theories during the case and concealed evidence. Albright, however, said that many of Intel's misconduct allegations referred to its own "missteps or inaction" that VLSI "simply used to its advantage."

Albright also denied Intel's requests for rulings that it did not infringe the patents and that VLSI was not entitled to any damages.

All of the orders were originally filed under seal in March and April.

A Waco, Texas jury awarded VLSI $2.18 billion for Intel's infringement of two of its patents last March. Albright later rejected Intel's bid for a new trial.

Intel defeated VLSI's bid for over $3 billion more in a second trial in Waco last April. A third trial in Austin was postponed last month after participants tested positive for COVID-19.

The case is VLSI Technology LLC v. Intel Corp, U.S. District Court for the Western District of Texas, No. 6:21-cv-00057.

For VLSI: Morgan Chu of Irell & Manella

For Intel: William Lee of Wilmer Cutler Pickering Hale and Dorr

Read more:

Intel loses U.S. patent trial, ordered to pay $2.18 billion to VLSI Tech

Intel defeats VLSI Technology in $3.1 bln patent trial

Intel fails to overturn $2.18 billion patent verdict, plans appeal

U.S. panel to review patent from $2.1 bln Intel court loss

COVID-19 cases derail billion-dollar Intel patent trial for now

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