Intel has apparently infringed two patents by VLSI Technology LLC and are subsequently getting sued a whopping $2.18 billion in a new lawsuit, though Intel will appeal the verdict. Intel also supposedly did not purposefully infringe the patents, but a Texas jury ruled in favor of VLSI anyway.
The two patents by VLSI Technology LLC apparently relate to increasing the speed and power of processors, obviously an industry that Intel is quite well known with. The patents were originally owned by NXP Semiconductors, Inc., but eventually were acquired by VLSI in 2019.
The $2.18 billion patent infringement is one of the largest lawsuit damages in US History, which Intel’s lawyer, William Lee, considers a ludicrously large amount that is clearly more than the patents are worth:
“[VLSI] took two patents off the shelf that hadn’t been used for 10 years and said, 'We'd like $2 billion',” Lee said, continuing to point out that VLSI have no products or other forms of revenue other than this lawsuit, and that $2.2 million would be a more appropriate amount for the damage claims.
Despite the large sum of money that Intel is said to pay, $2.18 billion wouldn’t be all that much for a company that made $5.9 billion in profits alone during Q4 2020. Even so, Intel will continue to appeal the lawsuit and it’s likely we’ll be hearing more about this situation in the future as the case develops.