Intel wins a US appeal to overturn a $2.18 billion VLSI patent verdict. On Monday, VLSI Technology, the patent owner, was awarded $2.18 billion for patent infringement against Intel Corporation (INTC.O.). This decision was overturned by a court of appeals in the United States, making it one of the highest judgments in the history of patent law in the United States.

After the United States Court of Appeals for the Federal Circuit overturned the decision that the jury reached in 2021, which said that Intel had violated one of the VLSI patents, the case was ordered back to Texas for a fresh trial to establish the amount of money for which Intel is responsible for violating a second VLSI patent.

The property owners of the patent holding company VLSI are the investment funds that Fortress Investment Group administers. This year, Mubadala Investment Co., based in Abu Dhabi, agreed with Softbank Group Corp. in Japan to purchase a controlling stake in Fortress.

Requests for comments on the decision were not immediately met with a response from representatives of VLSI. According to a representative for Intel, the corporation expressed its satisfaction with the decision. It stated that it would contend that the VLSI patent is “of little value” in the ensuing damages trial.

VLSI has filed a lawsuit against Intel in several states in the United States, alleging that the latter violated several patents that concern semiconductor technology.

A Waco, Texas, jury awarded VLSI $2.18 billion as part of the initial trial about the issue. The jury concluded that the technology used in Intel microprocessors violated patents that VLSI had purchased from NXP Semiconductors (NXPI.O), a Dutch chipmaker in the Netherlands.

According to a decision that the Federal Circuit handed down on Monday, there was not enough evidence for the jury to have concluded that Intel had violated one of the two patents at issue, accounting for $675 million of the penalty.

The Court of Appeals in Washington, located in Washington, confirmed that Intel had violated another VLSI patent; however, it stated that issues with the damages analysis warranted a fresh trial to calculate the appropriate judgment correctly.

The jury had awarded VLSI $1.5 billion in damages as restitution for Intel’s patent infringement. Intel’s share price fell by more than four percent on Monday morning. Additionally, decreases were observed at other key semiconductor manufacturers.

Another Waco jury trial in 2021 resulted in Intel’s victory against VLSI’s demand for more than $3 billion in damages. During the previous year, a different jury in Austin, Texas, concluded that VLSI was entitled to approximately $949 million from Intel in their third patent action.

Subsequently, the firms agreed to drop a possible lawsuit worth several billions of dollars in Delaware. It is anticipated that another experiment will start in Northern California in the year 2024.