Intel Wins Patent Dispute With Via Technologies

The U.S. Federal Court of Appeal recently affirmed a lower court's decision in a patent infringement dispute between Intel Corporation ("Intel") and Via Technologies, Inc. ("Via"). Intel had brought an action against Via alleging infringement of its U.S. Patent No. 6,006,291 ("the 291 patent"). In response, Via counterclaimed against Intel alleging that the 291 patent was invalid for indefiniteness. The U.S. District Court for the Northern District of California held that Via did not infringe the patent on the basis that it was licensed to use it. The court also dismissed Via's counterclaim. Intel had developed a new standard for the industry which related to the electronic interface and signal protocols by which devices in a computer system communicate with each other. A specification, referred to as Acceleration Graphic Port ("AGP") Revision 1.0, was published describing how Intel's AGP permitted graphics devices to communicate without using the bus. Subsequently, a second revision of the specification – AGP Revision 2.0 – was published describing two new improvements. One improvement disclosed was the "Fast Write" technology. Fast Write is the subject of the 291 patent. To promote standardization, Intel would grant a royalty free cross-license to corporations interested in complying with the new standard promulgated in AGP Revisions 1.0 and 2.0. The licence specified that it covered any patent claims that "must be infringed in order to comply with the electrical interfaces and bus control protocols disclosed and required by the specification described," in AGP Revisions 1.0 and 2.0. VIA had signed the AGP license and was making chip sets which supported Fast Write. At issue was whether that license encompassed the Fast Write technology; that is, whether Fast Write was "required by" the AGP specification. In interpreting the agreement, the District Court found the language of the agreement ambiguous and following the principle of contra preferendum, the agreement was construed against Intel – the drafter of the agreement. Accordingly, the agreement was interpreted as encompassing the Fast Write technology and Intel's claim against Via was dismissed. The appellate court concurred. The appellate court agreed with the District Court that claim 1 of the U.S. Patent No. 291 (the subject of Via's counterclaim) was not indefinite and therefore not invalid. For a copy of the Federal Court of Appeal's decision, please visit: http://www.fedcir.gov/opinions/02-1212.doc For a copy of US Patent No. 6,006, 291 please visit: http://makeashorterlink.com/?J24411693 Concerned about your company's intellectual property? Contact Gervas Wall (gwall@dww.com) or Peter Wang (pwang@dww.com) of DWW.