More than $4 billion in deductibles? VLSI and Intel End Patent Dispute in Delaware

28 August 2023

VLSI and Intel have agreed to end the patent dispute in Delaware. Intel has previously said that VLSI claims more than $4 billion.

According to Reuters, VLSI pointed out in a document that VLSI would reject the Delaware case with prejudice, which meant that it could not bring it up again. VLSI also said that the company had agreed not to sue Intel's suppliers or customers for the five patents involved in the case, and neither party had paid the other party to terminate the lawsuit.

Intel confirmed in a statement that VLSI had agreed to dismiss the Delaware case, but did not provide further details.

It is reported that VLSI is a patent holding company, which has filed multiple infringement lawsuits against Intel, and won more than 3 billion dollars in jury verdict in two other cases against Intel in Texas. In addition, the trial of another dispute between the two companies is planned to start in Northern California in 2024.

Previously, Wilmer Hale and William Lee, Intel lawyers, said that these patents were owned by NXP. VLSI, which was founded four years ago, had no products, and the potential income came from the lawsuit. "VLSI takes out two patents that have not been used in 10 years and claims compensation of 2 billion dollars, which will bring pressure on real innovators. VLSI can obtain compensation of no more than 2.2 million dollars," added William Lee.