Intel Pays $2.18 Billion in Damages After Losing Patent Infringement Case

Intel has been charged with $2.18 billion in damages over losing a lawsuit for patent infringement related to chip-making technology. This makes it one of the largest patent-related damage awards in the history of America.

The lawsuit was filed by VLSI Technology, which claimed that Intel had infringed two of its patents which were in private access. The federal jury handling the case in Texas recognized $1.5 billion for infringing one patent and $675 million for infringing the other, making a total of $2.18 billion. The chipmaker has said that it is going to appeal this judgment.

The federal jury denied Intel’s attempt to challenge the decision and its argument that one of the patents was invalid because it involved work done by Intel engineers. Intel lawyer William Lee said in the argument that these patents had been owned by Dutch chipmaker NXP Semiconductors Inc instead, and they should get the cut of any damage reward.

He also made a handful of other arguments saying that VLSI Technology was only founded four years ago and its only potential revenue is this lawsuit. He also argued that the company is entitled to no more than a $2.2 million damage reward.

The total payment in damages of $2.18 billion makes up nearly half of Intel’s fourth-quarter profit in 2020. The company has been the leader of the chip industry for decades but has been struggling to maintain its lead in recent years.

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