US patent tribunal sides with Intel again in $2.2 billion VLSI case

The Patent Trial and Appeal Board invalidated the computer chip-related patent after canceling another VLSI patent that accounted for the remainder of the Texas federal court verdict last month.

VLSI can appeal both decisions to the US Court of Appeals for the Federal Circuit.

An Intel spokesperson said the company was pleased with the decisions to invalidate both of VLSI’s “low-quality” patents. Representatives for VLSI did not immediately respond to a request for comment.

VLSI, a patent holding company that has brought several infringement lawsuits against Intel, won a separate verdict worth $949 million against the chipmaker in Texas last year. A jury ruled for Intel in 2021 in another Texas patent case in which VLSI had sought $3.1 billion in damages.

The companies agreed to dismiss another VLSI lawsuit in Delaware in December. A trial in a related case is scheduled to begin in Northern California next year.

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VLSI is owned by investment funds managed by SoftBank Group Corp subsidiary Fortress Investment Group. The patent board proceeding decided on Tuesday was initiated by South Dakota-based Patent Quality Assurance LLC. An attorney for Patent Quality Assurance did not immediately respond to a request for comment.

The other patent from the $2.18 billion verdict was challenged by a separate entity called OpenSky Industries LLC. U.S. Patent and Trademark Office Director Kathi Vidal sanctioned OpenSky last year after finding it tried to extort both Intel and VLSI, but allowed the proceeding to continue with Intel leading it.