The U.S. District Court, the Eastern District of Texas, ruled late last week that Intel’s Itanium-based products infringe Intergraph’s patented technology for defining key aspects of parallel instruction computing (PIC).
In his order, Judge T. John Ward ruled that Intergraph’s patents are “valid and enforceable” and that Intel’s products “literally infringe” two claims of the ‘028 patent and seven claims of the ‘003 patent. Judge Ward also determined that Intergraph is entitled to an injunction on Intel’s Itanium or Itanium 2 processors.
During court-ordered mediation talks in April 2002, Intergraph and Intel settled an earlier patent infringement case filed by Intergraph in 1997. In that settlement, Intel paid Intergraph $300 million and took a license to Intergraph’s Clipper technology patents. The mediation also resulted in Intel and Intergraph agreeing to set liquidated damages for the PIC patent case. Under terms of the settlement (a copy of which may be obtained here), the Texas Court’s finding of infringement obligates Intel to pay Intergraph $150 million in liquidated damages. Upon payment of $150 million, Intel then has three options: (1) pay an additional $100 million to Intergraph and receive a license to the PIC patents, (2) appeal the District Court decision and, if they lose the appeal, pay Intergraph an additional $100 million, or (3) try to design around the infringement.
In his order, Judge T. John Ward ruled that Intergraph’s patents are “valid and enforceable” and that Intel’s products “literally infringe” two claims of the ‘028 patent and seven claims of the ‘003 patent. Judge Ward also determined that Intergraph is entitled to an injunction on Intel’s Itanium or Itanium 2 processors.
During court-ordered mediation talks in April 2002, Intergraph and Intel settled an earlier patent infringement case filed by Intergraph in 1997. In that settlement, Intel paid Intergraph $300 million and took a license to Intergraph’s Clipper technology patents. The mediation also resulted in Intel and Intergraph agreeing to set liquidated damages for the PIC patent case. Under terms of the settlement (a copy of which may be obtained here), the Texas Court’s finding of infringement obligates Intel to pay Intergraph $150 million in liquidated damages. Upon payment of $150 million, Intel then has three options: (1) pay an additional $100 million to Intergraph and receive a license to the PIC patents, (2) appeal the District Court decision and, if they lose the appeal, pay Intergraph an additional $100 million, or (3) try to design around the infringement.
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