Intel Faces New Patent Fight: Court Revives VLSI Lawsuit

A U.S. appeals court has revived a patent infringement lawsuit filed by VLSI Technology against chipmaker Intel. This decision provides VLSI with a renewed chance to pursue damages in a dispute involving semiconductor innovations that has already seen multi-billion dollar verdicts. The U.S. Court of Appeals for the Federal Circuit overturned a previous ruling by a California federal judge, who had determined that Intel did not infringe a specific VLSI patent. The question of infringement will now proceed to a jury.

This ongoing legal battle has resulted in significant jury awards for VLSI in Texas, including verdicts of $2.2 billion and $949 million. However, the $2.2 billion verdict was later reversed on appeal, and Intel is currently challenging the $949 million award. VLSI, a patent holding company owned by investment funds managed by Fortress Investment Group, has initiated multiple lawsuits against Intel across various U.S. courts, alleging infringement of patents related to semiconductor technology.

VLSI initially sued Intel in California in 2017. In 2024, U.S. District Judge Beth Freeman dismissed the case, finding no infringement of a VLSI data-processing patent. The Federal Circuit's three-judge panel has now sent the case back to the California court after vacating Freeman's noninfringement decision, allowing the dispute to move forward.