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October 10, 2006
Power Up
Power
Integrations zapped Fairchild Semiconductor for willfully infringing four
patents. Tuesday, a Delaware jury awarded almost $34 million in damages, at a
strikingly high 15% "reasonable" royalty rate.
The eight-person jury awarded $14.98 million for lost profits on two patents; $1.95 million for past lost profits from price erosion; $13.02 million for future lost profits from price erosion; and $4.03 million in royalties; the total: $33.99 million.
In a suit filed in October 2004, Power Integrations alleged that 33 parts made by Fairchild infringed; components used in personal electronics devices such as DVD players, cell phone chargers, and LCD monitors.
The patents are for ICs used in power supplies: 6,107,851; 6,249,876; 6,229,366; and 4,811,075.
Oddly, yesterday's verdict is but the first phase. On December 4, Fairchild gets a chance to electrocute Power Integrations' patents for prior art invalidity. If it can't, Power Integrations will seek injunctive relief, barring manufacture, importation and sale of infringing products, as well as seeking further damages based on willfulness.
In August, Power Integrations won an ITC ruling that System General had infringed two patents, after an action filed in May 2005.
Posted by Patent Hawk at October 10, 2006 10:50 PM | Damages