Intel to pay VLSI $162m interest in record patent suit
Intel has been ordered to pay $162 million in prejudgment interest to VLSI Technology on top of $2.1 billion in damages for infringing two patents.
The initial judgment, handed down on March 2, 2021, saw VLSI secure the record damages verdict for Intel’s infringement of US patent number 7,523,373 and 7,725, 759, marking one of the largest patent damages awards in US history.
This week, the US District Court for the Western District of Texas granted in-part VLSI’s motion for prejudgment and post-judgment interest, according to an order published on Tuesday, May 10.
Judge Alan Albright disregarded Intel’s claims that VLSI was not entitled to prejudgment interest, arguing that the original damages award was “generous enough”.
Intel also argued that VLSI’s status as a “non-practising entity” should preclude it from receiving prejudgment interest. However, Albright cited precedent in DDR Holdfings v Hotels.com (2014) as proof of non-practising entities being awarded interest.
After the entitlement to interest was established, Albright considered both VLSi’s and Intel’s arguments for the interest rate.
VLSI argued that it should be awarded a staggering prime rate of $846,670,667 for infringement starting in 2013 and compounding annually up until January 2022.
Intel instead argued that, if VLSI should be awarded interest, it should instead be awarded a 52-week US Treasury Bill rate rather than the prime rate. Intel said that this would be the standard rate “absent evidence that the patent holder is entitled to a better rate” and would equate to $43,543,572.
Albright sided with Intel, agreeing that the US Treasury Bill rate was suitable, claiming that it was a “well-accepted” method of placing VLSI in a position of where it would be if Intel had not infringed.
Both parties also disagreed on where the interest period should start. Intel argued that the prejudgment interest period should start on April 11, 2019, when VLSI filed the infringement action in the WACO court. VLSI argued that it should instead be calculated from April 11, 2013 for the ‘373 patent and June 11 for the ‘759 patent.
Albright agreed with VLSI that the rate should start from 2013 and run through to January 31, 2022.
Albright’s final calculation for the Treasury Bill rate for the period resulted in a $111,736,762 prejudgment interest award for infringement of the ’373 patent and $50,072,501 prejudgment interest award for the ’759 patent.
He also added additional daily rates up until final judgment was entered on April 21, 2022, which equates to $512,080.
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories sent like this straight to your inbox
Today’s top stories
