Intellectual Property

Federal Circuit trims $1.5B patent win, says nothing owed for chips made, used and sold outside US

  • Print.

The U.S. Court of Appeals for the Federal Circuit has trimmed a $1.5 billion award for patent infringement in a decision that said there is no liability for products manufactured, used and sold outside the United States.

The Federal Circuit trimmed the award to Carnegie Mellon University to $278 million, report the Associated Press, Reuters and Recorder. How Appealing links to additional coverage and the decision (PDF).

The defendant, Marvell Technology Group, was accused of copying the work of Carnegie Mellon researchers in its noise reduction technology for hard drives.

The $278 million represents a royalty of 50 cents a computer chip for chips imported into the United States. The award is likely to increase by $50 million for Marvell’s use of the technology between the trial and the judgment, according to the Recorder story.

Marvell won on a second point when the Federal Circuit said the patent award could not be enhanced for willful infringement because Marvell presented an “objectively reasonable” defense.

On remand, the lower court will consider whether chips made and used outside the United States were nonetheless sold in the United States, requiring a royalty payment.

Give us feedback, share a story tip or update, or report an error.