Intel to pay compensation to a company that does not exist

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Having a hard time with the rise of Ryzen series processors, Intel continues to have a hard time. One blow to the company came from the copyright lawsuit, especially after the loss of market share in the processor market for users. The court asked Intel to pay $ 2.18 billion in damages to long-inactive VLSI Technology.

Company born from the ashes for the case, VLSI

VLSI, which many of us have heard of for the first time, is one of the architects of the ARM project, along with Apple and Acorn. Philips bought the company, which later dwindled, in 1999. After this incident, all assets went to Philips’ subsidiary NXP. The company, whose name we have never heard of after this date, was born from the ashes in 2019. Moreover, for a case.

VLSI, which sued Intel, accused the company of significant copyright infringement. Saying that it violated three different patents, the company demanded compensation from semiconductor manufacturer Intel. Although these patents were granted to other companies in 2009, 2010 and 2012, they returned to the recently established VLSI.

Not accepting the charges, Intel accused the VLSI of being a “zombie”, so to speak. However, this defense, which was not sufficient, failed to persuade the court. Deciding that two of the three patents applied for were definitely violated, Intel could not escape the penalty. The company will pay 1.5 billion for a royalty and $ 675 million for another. Some of the royalties will be paid to NXP. The patents that are the subject of the lawsuit are related to the actions taken to increase the processor’s speed and power.

Making a statement after the lawsuit, the company said, “We plan to appeal and we believe we will win this case.” made the explanation. If the company loses the appeal, it will have to pay this compensation, which corresponds to 10% of its annual income.

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