There’s always an inherent drama when intellectual property titans tussle. One such enduring scenario comes from the ongoing dispute between VLSI and Intel in the ever-turbulent patent battlefield. Initially reported on
Above The Law, the latest developments have significant implications for the future trajectory of the case.
The current contention, discussed here with a focus on recent developments, dates back to 2017 – a stark reminder that these parties have been entrenched in legal warfare for an extended period. Fast forward to the turn of 2024, Intel has been granted a summary judgment for two of the four VLSI patents active in the case, while VLSI has furnished Intel with an “unconditional covenant not to sue” involving the remaining two asserted patents. This effectively shuts down the scheduled trial for March 2024, leaving only Intel’s affirmative defense that it already possesses a license for all of VLSI’s patents pending to be put to trial.
The Intel defense hinges upon a license awarded to it by a patent plaintiff, Finjan, eventually acquired by Fortress, VLSI’s owner. While as per Above The Law, Intel was unsuccessful in getting it moved on summary judgment, a glimmer of hope does persist. Following a ruling on January 24, 2024, the court denied Intel’s bid to have its license defense tried in the March trial. The reasoning being that Intel’s license defense is present only as an affirmative defense and not a counterclaim. The fact that no live VLSI infringement claims remained in the case was also discussed.
Nevertheless, despite the court considering Intel’s license defense moot, the possibility remains for Intel to revise its answer and counterclaims. That could mean adding its license defense as a full counterclaim. There is certainly room to keep an eye on how this evolves, as the door is potentially open to the court allowing it to proceed to trial swiftly, perhaps even within the current March 2024 trial setting. If Intel manages to escalate its license defense to a counterclaim, it could prove to be a significant turn in a case that began six years ago. For the moment, Intel has, effectively, “no license to try”. However, the circumstances can change rapidly in the ebb and flow of legal tussles.